2020 Foresight Report: Captive Insurance




$ 3800

In Stock


  • The report provides industry and geographic analysis, information and insights into the utilization of captive insurance. It also provides an in-depth analysis of the recent trends and developments in the field of captive insurance
  • Intensive analysis of the dynamics of the main industries (financial services, healthcare, retail and consumer products, and infrastructure companies) employing captive insurance and the recent trends and drivers in these industries that have been propelling the related companies to set up captive insurance companies
  • Detailed analysis of the major captive hubs of Bermuda, the Cayman Islands, Vermont (US), Guernsey and Luxembourg in terms of classes of business being insured, the key geographies that have been contributing to the setting up of captives in these destinations and the important drivers contributing to the popularity of these destinations as captive hubs
  • Detailed overview of steps required to be taken to set up captive insurance entities in the above mentioned captive destinations, the respective captive insurance related regulations in these destinations and the applicable fees and taxes
  • Provides a snapshot of the concept of captive insurance, the advantages that this insurance arrangement provides, the types of captive insurance entities that there are and the challenges that the captive insurance arrangement generates

Executive summary

Growing uncertainties in the global economy and frequent rises in premiums in the commercial insurance industry have encouraged companies from diverse industries to set up their own captive insurance businesses. Companies across a diverse range of industries are increasingly employing captive insurance as part of their risk management strategies. 

These companies are exposed to various risks and unforeseen circumstances, and it is often not feasible for them to obtain insurance cover for these risks due to high premiums in the commercial market and the non-availability of insurance cover for some industry-specific risks. The four-leading industries in the world, in terms of the number of captives established, are financial institutions, healthcare service providers, retail and consumer products companies and infrastructure companies, mainly construction and power and utilities. 

In terms of the number of captives domiciled on a global scale, the leading destinations include Bermuda, the Cayman Islands, Guernsey, Luxembourg and the US state of Vermont. The key reasons for the popularity of these locations are the relatively low taxes that they levy on captives, favorable foreign direct investment (FDI) regulations, the availability of competent professional manpower and geographical advantages such as proximity to the main regions of operations of the parent companies. Many captive domiciles such as Bermuda and Guernsey have agreed not to adopt standards equivalent to Solvency II.


  • This report provides a detailed analysis of the captive industry worldwide
  • It explains the concept of captive insurance, the benefits that accrue from it and the types of captives that can be setup
  • It details the main industries that have been employing captives and the recent trends for their increased use of captive insurance arrangements
  • It details the important captive insurance destinations across the world, the main drivers contributing to their popularity and the important geographies where companies have been setting up connected captives
  • It lists out the steps needed to be taken to set up captives in these destinations, the important regulations related to captive insurance companies in these destinations and taxes and fees applicable to captive insurance companies in these destinations

Reasons to buy

  • Understand how a company can benefit by setting up its own captive insurance subsidiary
  • Understand the kind of industries where companies would benefit most by setting up captives
  • Gain insights into the important captive destinations where a company could set up its captive and the conditions specific to these destinations by which a company would benefit
  • Be informed about the key steps that a company has to take to establish a captive in the major captive hubs, the legal and regulatory framework in each of these destinations and the fees and other taxes applicable to the captives set up in these destinations

Key highlights

  • Increasingly, companies across the globe have been setting up captive insurance companies to save on insurance premium costs and also because of non-availability of certain types of insurance.
  • Companies operating in the fields of financial services, healthcare, retail and consumer products and infrastructure, comprising construction and power and utilities, have been increasingly adopting the captive insurance business model. 
  • Financial institutions account for almost 20% of the total number of captives across the world. The risk management competencies of these institutions and the requirement of meeting Basel II/ III standards have been driving them towards the increased use of captives.
  • The number of captives set up by healthcare entities is expected to increase significantly, with many driven by the Patient Protection and Affordable Care Act (PPACA), passed by the US government in 2010.
Table of contents

1 Executive Summary

2 The Captive Insurance Sector
2.1 Benefits of Captive Insurance
2.2 Types of Captive Insurance
2.3 Recent Trends and Developments
2.4 Challenges

3 Key Industries Employing Captive Insurance
3.1 Financial Institutions
3.2 Healthcare
3.3 Retail and Consumer Products
3.4 Infrastructure

4 Key Captive Insurance Hubs
4.1 Bermuda 
4.1.1 Key markets for captive insurance inflow
4.1.2 Key drivers
4.1.3 Setting up a captive insurance business in Bermuda
4.1.4 Regulatory and legal framework
4.1.5 Taxation and fee structure
4.2 The Cayman Islands
4.2.1 Key markets for captive insurance inflow
4.2.2 Key drivers
4.2.3 Setting up a captive insurance business in the Cayman Islands
4.2.4 Regulatory and legal framework
4.2.5 Taxation and fee structure
4.3 Vermont 
4.3.1 Key markets for captive insurance inflow
4.3.2 Key drivers
4.3.3 Setting up a captive insurance business in Vermont
4.3.4 Regulatory and legal framework
4.3.5 Taxation and fee structure
4.4 Guernsey 
4.4.1 Key markets for captive insurance inflow
4.4.2 Key drivers
4.4.3 Setting up a captive insurance business in Guernsey
4.4.4 Regulatory and legal framework
4.4.5 Taxation and fee structure
4.5 Luxembourg
4.5.1 Key markets for captive insurance inflow
4.5.2 Key drivers
4.5.3 Setting up a captive insurance business in Luxembourg
4.5.4 Regulatory and legal framework
4.5.5 Taxation and fee structure

5 Appendix
5.1 Methodology
5.2 Contact Us
5.3 About Timetric
5.4 Disclaimer

Table 1: Types of Captive Insurance
Table 2: Classes in Bermudan Insurance
Table 3: Fee Structure for Captive Insurance in Bermuda
Table 4: Minimum and Prescribed Capital Requirements for Class B and Class C Insurers
Table 5: Stamp Duty Charges Applicable in the Cayman Islands
Table 6: Fee Structure for Class B and Class C Insurers
Table 7: Types of Captives in Vermont
Table 8: Vermont Premium Tax Rates
Table 9: Fee Structure Applicable in Vermont’s Captive Insurance Sector
Table 10: Guernsey Captive Insurance – Number of International Insurers, 2012 Vs 2013
Table 11: Guernsey Captive Insurance – Strategic Double-Taxation Agreements in Force
Table 12: Guernsey Captive Insurance – Minimum Capital Requirements
Table 13: Guernsey Captive Insurance – Minimum Solvency Requirements
Table 14: Corporation Tax Rates in Guernsey for the Financial Year 2012–2013
Table 15: Captive Insurance Regulatory Fee Structure in Guernsey with Effect from January 2013

Figure 1: Benefits of a Captive Insurance Arrangement
Figure 2: Key Challenges – Captive Insurance
Figure 3: Financial Institutions’ Captives – Key Drivers
Figure 4: Healthcare Captives – Key Drivers
Figure 5: Infrastructure Captives – Key Drivers
Figure 6: Key Drivers for Captive Insurance in Bermuda
Figure 7: Setting up a Captive in Bermuda – Flow Chart
Figure 8: The Insurance Regulatory Framework in Bermuda
Figure 9: Captive Insurance in the Cayman Islands – Key Drivers
Figure 10: Captive Insurance in Vermont – Key Drivers
Figure 11: New Insurance Licenses in Guernsey in 2012
Figure 12: Captive Insurance in Guernsey – Key Drivers
Figure 13: Luxembourg Captive Insurance – Key Markets
Figure 14: Key Drivers for Captive Insurance in Luxembourg