Regulation and Oversight
Solvency II Review Enhances Proportionality for Captive Insurers
The European Commission's Solvency II review will simplify compliance for EU-domiciled captives by introducing the "small and non-complex undertakings" (SNCUs) category. Most captives will qualify, benefiting from eased regulatory requirements and improved proportionality in areas like governance and risk assessments. Read More
FERMA Highlights Key Risk Management Roles in AI and Sustainability Regulations
FERMA's policy notes on the European Union's Artificial Intelligence (AI) Act and Corporate Sustainability Reporting Directive highlight the key roles of risk managers in compliance, insurance implications, and sustainability reporting. Risk managers are advised to implement AI governance, assess "silent AI" risks, and align risk analysis with sustainability standards under the European Green Deal. Read More
IRS Moves Forward with Micro-Captive Regulations
The Internal Revenue Service (IRS) is working to finalize regulations aimed at tightening disclosure requirements for potentially abusive tax transactions, including those involving captive insurance companies using § 831(b) for tax treatment. These new rules are expected to increase compliance scrutiny, which could result in legal challenges as the IRS moves toward finalization. Read More
US Department of Labor Proposes First Pension Plan Exemption for Captive Insurance
The Department of Labor proposed its first pension plan exemption for captive insurance, with Memorial Sloan Kettering Cancer Center seeking approval to reinsure a guaranteed annuity contract through its captive insurer. This shift from prior exemptions focused on welfare benefit plans is detailed by Eversheds Sutherland. Read More
Connecticut Passes Law Enhancing Captive Insurance Flexibility
Connecticut has enacted Public Act No. 24-138, enhancing flexibility for captive insurers and strengthening industry support, effective October 1, 2024. Read More