From: Captive.com/IRMI
he growth of the captive insurance industry has primarily been driven by the many financial advantages the strategy offers. Yet another contributing factor to the concept’s acceptance is frequently overlooked: the eagerness of regulators to capture the economic benefits associated with serving as a captive domicile.
It’s common for industries to think of the regulators who oversee their activities as “traffic cops” whose primary job is to spot violations. The captive insurance marketplace is different. While the agencies and staff who oversee the establishment and operations of insurers work hard to protect the public, many also put significant effort into making their domiciles more attractive to other captives.
That cooperative attitude has become increasingly important given the growth in available captive domiciles. We’re in a buyer’s market for organizations hoping to establish or expand a captive.
What once involved just a handful of willing domiciles has evolved into a competitive marketplace with dozens of choices. Attracting more captives not only means growing the domicile’s direct revenue but also creating a thriving industry for local professionals who support captives. Helping the domicile add high-income jobs boosts the regulators’ stature.
