Captive Insurers Increasingly Staying Onshore

Captive Insurers Increasingly Staying Onshore: "Corporates are more likely to form new captive insurance entities in onshore territories, such as in the United States and the European Union, and to opt for alternative captive structures, according to the findings of a new report.

Marsh's 2012 Captive Benchmarking Report, released at the 2012 Annual Conference of the Risk and Insurance Management Society, is based on the activities of more than 1,200 captives insurance companies - primarily single-parent captives with US or European owners. Captives are entities established within a corporate Group to insure the companies' interests internally, rather than through a third party insurer.

The report finds that from 1991 to 2000, 65% of captives formed were domiciled in offshore locations including Bermuda, the Cayman Islands, Guernsey, and the Isle of Man, while 35% stayed onshore. However, the study shows that over the last decade, many more captives (48%) were electing to stay onshore."

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