Iroquois Capital Group has formed a captive insurance vehicle, Iroquois Captive Services, in order to capitalise off of Tennessee’s burgeoning captive industry.
Laws have recently been passed in Tennessee that has allowed the state to form individual departments to focus on captive regulation. Captives are no longer regulated as traditional insurance companies, as they were previously, and this has caused a surge in their popularity.
Andy Rhea, managing director of captive management services for Iroquois, explained: “Iroquois Captive Services is a subsidiary of Iroquois Capital Group, who own nine different companies—some of which are financial services businesses. It was a natural fit to start this company to provide captive management, as it dovetails so nicely with Iroquois’s other financial services. I, as an attorney, was brought on from the state’s regulatory body in order to assist with captive management. Other individuals were brought on with a long history in the brokerage and insurance businesses.”
“We are after what is referred to as the ‘middle market’ for US companies—which is any companies that produce $10 million in revenue and up. Some companies, particularly the ones covered by the 831(b) election, may be smaller in the market compared to other domiciles and certainly the main offshore domiciles. However, those are the size of company that dominate this region, and those are the ones that we feel are such a good niche for us.”
