Featured News

Code of Ethics

Captive Insurance Industry Code of Ethics Adopted in North Carolina

The North Carolina Captive Insurance Association (NCCIA) recently adopted a code of ethics designed to maintain a high-quality captive insurance industry. The code of ethics is believed to be the first one created for the captive insurance industry. Atlas Insurance Management is one of the first captive insurance management firms to sign a written pledge to adhere to the 10 principles of the new code.
August 07, 2015 Read More
Keyboard Hands

New Online Captive Insurance Courses Offer CE and CPE Credit

A new Captive Insurance CE Learning Center, featuring online courses on captive insurance and related topics, is now open. Offered as a service of Captive.com, the learning center currently includes one course: Captives as Risk Retention Mechanisms. In July a second course, Property and Casualty Reinsurance Fundamentals, will be included, and a third course, Captives as Risk Transfer Mechanisms, will be added in August.
June 24, 2015 Read More

Treasury and IRS Issue New Proposed PFIC Regulations Aimed at Hedge Fund Reinsurers

Passive foreign investment company (PFIC) regulations proposed by the U.S. Department of the Treasury to close reinsurer PFIC loophole.
May 06, 2015 Read More

Hot Topics

Kitchen Sink

Captive-Related IRS Analysis: Everything but the Kitchen Sink

On August 14, 2015, the Internal Revenue Service (IRS) released Chief Counsel Advice (CCA) 201533011, in which the IRS determined that the excess loss insurance contracts at issue do not qualify as insurance for US federal income tax purposes. The CCA is the latest indication of the IRS's position on the ongoing issue of what is insurance and continues the IRS's reliance on the common sense insurance prong of the test for insurance to bolster its conclusions on the other prongs of the test.
August 26, 2015 Read More
American Courtroom Interior

Validus Court Holds FET Not Applicable to Foreign Reinsurance

Validus holding that federal excise tax (FET) does not apply to foreign reinsurance transactions is affirmed by the U.S. Court of Appeals for the District of Columbia Circuit.
May 27, 2015 Read More
Tax Court Decision

Healthmark Case Changes Brother-Sister Captive Tax Treatment

Captive insurance involving single-member limited liability companies may now qualify as insurance for tax purposes due to a recent decision in the Healthmark case.
April 06, 2015 Read More
IRS Building

IRS Dirty Dozen Abusive Tax Structures Single Out Micro-Captives

In IR-2015-19, the IRS explained that 831(b) micro-captives may be considered abusive tax structures and outlined determining criteria.
February 06, 2015 Read More

Recent News

Insuring New, Emerging, and "Uninsurable" Risks in Captives

2016 WCF News 
Captive insurance can be a useful tool for managing new, emerging, and typically uninsurable risks.
February 05, 2016 Read More

Captive Insurance Statistics for 2015—What Is Missing?

Question Mark 
This is the time of the year when the captive insurance domiciles report on captive formations for the prior year, which got us to thinking about the underlying statistics.
February 05, 2016 Read More

Captive Corporate Governance—The Case for Independent Directors

WCF Feb 3 Panel 
Captive corporate governance, including the use of independent directors, was the subject of a World Captive Forum workshop.
February 04, 2016 Read More

Cayman Captive Forum Profits Devoted to Ensuring the Future

Insurance Managers Association of Cayman (IMAC) devotes Cayman Captive Forum profits to providing scholarships to the islands' students.
February 04, 2016 Read More

Reinsurance Market Report 2016

WCF Feb 2 Panel 
Michael Woodroffe provides an overview of the reinsurance marketplace as of the beginning of 2016.
February 03, 2016 Read More

Montana Licenses 38 New Captives in 2015

Montana Flag 
Montana licensed 38 new captive insurers in 2015, according to a Montana Captive Insurance Association (MCIA) news release.
February 02, 2016 Read More

Captive Insurers Should Understand Rating Model

Madison Scottsdale, an investment manager active in the captive insurance space, has published in the Winter 2015 edition of its quarterly newsletter a first-in-a-series article on the new A.M. Best stochastic Best's Capital Adequacy Ratio (BCAR) model being implemented for property and casualty insurers.
February 02, 2016 Read More

Seven New Captive Insurers Licensed in Arizona in 2015

The Arizona Department of Insurance Captive Insurance Division has reported it issued 7 new captive licenses in 2015. It now has a captive portfolio of 110 captives.
February 01, 2016 Read More

Captive Insurance Industry in Bermuda Concerned about US Presidential Politics

Bermuda Flag 
The chief executive officer of the Bermuda Business Development Agency (BDA), Ross Webber, suggests there has been some "unsavory finger-pointing" in the US presidential election campaigning toward Bermuda and other offshore captive insurance domiciles.
February 01, 2016 Read More