While 2008, for the most part, was a dismal year for new captive growth–with some prominent captive domiciles seeing their new-formation numbers significantly down–the current climate is actually an ideal time to launch such a facility.
Most in the industry see this slowdown as a byproduct of the overall international economic downturn. During 2008, we saw failures among insurers, banks and investment brokerages–and all play a critical role in the operation of captives.
A little more than a year ago, the captive industry experienced a hiccup in new formations. This was due to proposed new Internal Revenue Service regulations, which were an effort to basically turn back the tax court clock 20 years for single-parent captive arrangements.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
