Taxation

Captive insurance can be a powerful risk management and risk financing tool, but those considering forming a captive must avoid potential pitfalls. A recent report from Ernst & Young LLP outlines five potential pitfalls prospective captive owners should be aware of to ensure long-term captive success. Read More

The Washington State Office of the Insurance Commissioner has given final approval to regulations issued in August to implement legislation that state lawmakers passed in April imposing new fees on captive insurance companies licensed in other domiciles but doing business in the state of Washington. Read More

On Tuesday, Washington State voters rejected a recent law that imposes premium taxes on captive insurance companies licensed in other states but doing business in Washington State. However, the law will remain in effect unless state legislators vote to repeal the measure. Read More

An anticipated global minimum tax on certain multinational companies creates the potential for double taxation on some insurers, according to A.M. Best. While short-term insurance coverages might fit into the tax scheme, A.M Best says the application of that minimum tax could prove challenging for insurers with longer-duration coverages. Read More

An anticipated 15 percent global minimum tax rate would marginally reduce Bermuda's advantageous tax status for the (re)insurance industry, according to Fitch Ratings. The 15 percent global minimum tax rate would be enacted with the expected passage of a recent multilateral agreement to establish the tax. Read More