The hard insurance market is highlighting the value of captive insurance companies both to control costs and to provide coverage that might be unavailable in the traditional market. Using a captive insurance company to address risks for which traditional coverage is either too expensive or unavailable offers several benefits.
The European Union has removed the Cayman Islands from its "blacklist" of noncooperative jurisdictions for tax purposes. In a statement, the European Council said the Cayman Islands, along with Oman, were removed from the blacklist "after having passed the necessary reforms to improve their tax policy framework."
A new special report from A.M. Best finds that credit rating activity for US property-casualty insurers was mixed in the first half of 2020, with upgrades slightly outnumbering downgrades. Approximately 25 percent of the 17 upgrades during the period were due to affiliations or mergers, the rating agency said.
CCRIF SPC is expanding its coverage to the private sector with a new parametric insurance product developed for the electric utility industry in the Caribbean. CCRIF currently provides parametric insurance coverage for tropical cyclones, earthquakes, excess rainfall, and the fisheries sector to 19 Caribbean governments and 3 in Central America.
Formations of new captive insurance companies are flowing amid hardening conditions in the traditional market with the growth trend expected to continue in 2021. For example, Vermont, the largest US domicile with 595 licensed captives, has already licensed 25 new captives so far this year.