Market News
Transfer Pricing and Captive Insurance: The Importance of Substance
Transfer pricing is the number one international tax issue facing multinational enterprises. For tax purposes, transfer prices should be determined in accordance with the arm's-length principle. The arm's-length principle also applies to captive insurance and whether insurance premiums paid to a captive insurance company are arm's length or not. Read More
Lloyd's Agencies: ILS Will Widen To Cover More Risks, Including Cyber
A survey by the Lloyd's Market Association of Lloyd's managing agents found that 80 percent of Lloyd's agencies want insurance-linked securities (ILS) as a permanent re/insurance market fixture. Of those surveyed, 100 percent believe ILS transactions will widen to cover more risks, including cyber and legacy business. Read More
More Insurers Using Reinsurance Strategy To Manage Volatility
The latest risk appetite survey from Willis Towers Watson confirmed that risk appetite is increasingly central to insurers' business decisions. The survey found that, more and more, insurers are using reinsurance for earnings protection and volatility reduction. Read More
Microsoft Settles, Washington Asks Captives To "Pay Their Fair Share"
Microsoft Corporation's Arizona captive insurance company will pay more than $875,000 for unpaid premium taxes and interest and penalties, ending a cease-and- desist order issued in May by State of Washington Insurance Commissioner Mike Kreidler. Read More
Captive Premium a "Nice Target for Tax Revenue," Say Some Regulators
At the Vermont captive conference, David Provost, Vermont's deputy commissioner of captive insurance, encouraged captive insurers who want to see changes in captive insurance company statutes to contact their captive regulators. He also said some state regulators are speaking of captive premium as a nice target for tax revenue. Read More