The Association for the Management of Risk and Insurance of Enterprise (AMRAE) has announced the imminent creation of the French Federation of Company Captives.
The federation will be designed to introduce the interests of these companies into public discourse and debate, as well as facilitate the creation and deployment of captives in France.
AMRAE notes that the combination of a hardening commercial market and emerging exceptional and systemic risks have generated a favourable context to “reaffirm the major interest” in captives as a consolidation of an organisation’s overall resilience.
The association says the federation is in response to this recognised demand, having identified more than 50 French companies in 2021 with plans to create captives, several of which request approval from European regulators to place the companies in domiciles outside of France.
In a press release, AMRAE states it “deeply regrets the absence of provisions in favour of these tools in the 2022 Finance Bill”, which is determined to be the cause of these companies’ proposed redomestication.
AMRAE says it is also continuing its effort to establish a provision for the resilience of French companies, particularly small- and medium-sized organisations.
The association notes that it “remains confident on the favourable outcome” of the federation, anticipating that relevant draft measures will be included within the framework of France’s next finance law.
