Understanding the Drivers Behind Captive Domicile Decisions

This episode of The Edge of Risk Podcast by IRMI features an insightful discussion with Austin Griffith of Risk Management Advisors on how organizations navigate captive insurance domicile selection. Mr. Griffith begins by outlining the fundamental factors involved, including the location of insured risks, the types of policies written, premium tax structures, regulatory examinations, and travel considerations for board meetings. He also stresses the operational significance of domicile service quality—an often overlooked but meaningful factor for captive owners seeking timely regulatory responses.

The conversation highlights the popularity of home state domiciling, particularly when states have strong legislative support or economic incentives. However, Mr. Griffith notes situations in which organizations may need to select an established domicile elsewhere if their home state lacks the necessary statutory authority or regulatory infrastructure. He also addresses federal and state tax implications, procurement tax issues, and common misconceptions about the domicile-selection process.