While confidence appears to be returning to the captive sector, spurring growth in domiciles across the board, there are regulatory issues making 2010 a year to watch, that among other factors may impact those doing business offshore, according to captive management expert Nancy Gray.

“We saw the fourth quarter of 2008 and into the first quarter of 2009, everything was quiet on the captive front,” noted Ms. Gray, regional director for The Americas at Aon Insurance Managers in Vermont. The reason was a number of companies putting their captive plans on hold.

“There was a hesitation from companies to place capital into a captive company and have to secure letters of credit for their liability in the captive programs,” she said. “What happened is that things eased up and plans that were in place were jump-started.”