Strong demand from small and medium-sized companies will continue drive expansion of the US captive market in 2015, according to Marsh’s latest US Insurance Market Report.
Legislation in additional states has made it easier for companies to form captives, while new organisations are enquiring about the benefits of a captive arrangement.
US domiciles Utah and Delaware have benefit from this demand in particular, according to Marsh’s report.
Utah is the leading domicile for small captives, with 342, followed by Delaware, which has grown in the small and large area with special purpose vehicles, for a total of 298 captives, including cell facilities.
Oregon, Ohio, North Carolina, and Texas have also implemented captive legislation in the last two years. “As more states enact legislation, competition to attract captives will grow, allowing new owners to select a state that best serves their needs and giving bargaining power to existing captive owners,” explained the report.
“The US now has more than 35 states with captive legislation, a clear sign that the number of captives in the US is likely to increase.”
The report added that captive owners should be vigilant about evolving regulations in foreign and domestic domiciles, with the US Internal Revenue Service and international insurance supervisors challenging some arrangements last year.
