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Sorting the Wheat from the Chaff - Competition for captive business heats up between domiciles, Matt Broomfield, Captive Review, March 20111
[Excerpt] The competition between domiciles for new captive business continues heating up. Mr. Broomfield cautions about buying into all the hype coming from domiciles trying to lure new captive business. "The disparity between publicized changes and their purported significance to the captive industry, and the real drivers of the industry's growth ... raises a wider issue: what events and data really make a difference to the captive industry?" Mr. Broomfield continued, "The strength of Vermont, Bermuda and the Cayman Islands lies in their infrastructure, specifically their abundance of high-quality accountants, actuaries, lawyers and captive managers, as well as well resourced insurance divisions." We agree with Mr. Broomfield that domicile selection is both a science and an art and the best domicile depends upon your specific situation. As we caution elsewhere on this site, most advisors have conflicts of interest making them prejudice towards one domicile or another. A high-quality feasibility study is useful in making the best domicile and other important decisions to the success of captive insurance implementations.
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Nevada looks to regain spot as captive insurers' home, John Seelmeyer, Northern Nevada Business Weekly, July 2011
[Excerpt] Nevada's recently enacted legislative changes aim to make Nevada more competitive with recent legislation in other domiciles. Nevada has dropped from the #3 U.S. domicile to #8 in recent years.
The major changes address elimination of the mandatory three year regulatory audit, it also allows proforma financial information prepared by actuaries to be used in applying for approval verses CPA prepared proformas, and it eliminates a previously required annual report each March.
