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Twelve Helpful Tips on Selecting a Domicile

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What factors should be considered in selecting the domicile for a captive insurer?

1. the lines of insurance the domicile permits a captive to write,

2. the accessibility to regulators and governmental officials that act on the legislation and regulations that impact captives,

3. the legislative and regulatory philosophy, commitment, and appreciation of captive insurance companies,

4. the supporting infrastructure in the domicile (i.e. captive managers, third party administrators, legal counsel, investment managers and consultants, banking services, telecommunications, captive insurance association, availability of insurance professionals if the captive is to be staffed in-house, and access to air transportation),

5. the regulatory reporting requirements,

6. the requirements of records and files that must be maintained in domicile and therefore duplicated if captive administrative offices are located elsewhere,

7. the flexibility for a captive to set it rates without prior approval of domicile regulator,

8. the investment restrictions,

9. the premium taxes,

10. the requirements for meetings of the board of directors of the captive,

11. how the domicile charges expenses for regulatory examinations and timeliness of regulatory exam reports,

12. and the adequacy and competency of staff in the domicile regulatory agency


For information on specific domiciles, see the captive.com Domicile Showcase pages.

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