Regulation and Oversight
Guernsey's financial services sector is emerging from its COVID-19 lockdown. The island, a leading domicile for captive insurance, alternative investment funds, and private wealth, went into lockdown on March 24 to help control the spread of the disease. There are currently no known active COVID-19 cases in the island.
In a letter, the US Treasury Department has indicated its concern over legislation forcing insurers to pay COVID-19 pandemic-related business interruption (BI) claims when policies exclude the risk. The letter says insurers should pay valid claims, but forcing insurers to pay excluded claims conflicts with contractual obligations.
The Vermont Captive Insurance Association (VCIA) has spoken out about the US Internal Revenue Service's (IRS) treatment of micro-captives. In a letter to US Treasury Secretary Steven T. Mnuchin and IRS Commissioner Charles Rettig, VCIA President Richard Smith says a March 20, 2020, IRS letter raises concerns about IRS tactics.
The Connecticut Insurance Department is partnering with accounting firms to expand the state's captive insurance market. The department said that as trusted advisers to most midsized businesses, accounting firms "are best positioned to assist in the education and communication of the benefits of captive insurance companies to these businesses."
Due to the spread of the coronavirus, the Tennessee Department of Commerce and Insurance is temporarily suspending its requirement of in-person meetings with prospective captive insurance company sponsors. Instead, Tennessee captive staffers will meet prospective captive insurance company owners and their captive managers by video conference.