CICA: Interest In Domestic Captives Up

CICA: Interest In Domestic Captives Up

By Caroline McDonald

NU Online News Service, Aug. 16, 3:52 p.m. EDT?Captive insurance business professionals indicated they are most likely to form a captive insurer onshore than offshore, according to a poll conducted by an industry association.[@@]

The Captive Insurance Companies Association said in a statement that it asked in an online poll: "In the next 12 months do you anticipate forming a new captive?"

Of the field of respondents, 92 percent responded yes, with 52 percent indicating they plan to form their new captive domestically.

The poll found that 28 percent plan to form a captive outside the United States, while 12 percent have not yet decided on a domicile. Eight percent said they do not plan to form a new captive within the next year.

The poll, located at www.cicaworld.com, is the latest of a series of online surveys geared to professionals in the captive insurance industry, according to CICA. Previous topics include trends in the amount of litigation involving captives and return on invested assets with captives.

The three largest U.S. domiciles are Vermont, which licensed 77 captives in 2003; South Carolina, which licensed 37 captives in 2003; and Hawaii, which ended the year with 23 new captives (NU March 15, 2004).

Bermuda remains the world's largest captive domicile with 89 licensed in 2003 and 1,157 captives overall.