Captives in the British Virgin Island’s insurance sector continue to dominate the market, in terms of the number of firms, as well as revenues generated, according to a new BVI Global Contribution report.
Figures in the report show that out of the 176 insurance licenses, as of 31 December 2016, 137 were captives, while the remaining 39 were domestic.
The report also revealed that in 2016, the BVI insurance sector employed 106 people, and contributed $16 million in gross value added, and $2 million in taxes.
It also showed that the majority of all clients of insurance service providers in the BVI are located in the US and Canada.
BVI legislation allows for 831(b) captives and 953(d) captives to be licensed in the domicile. 831(b) captives can hold up to $1.2 million annual premium, while 953(d) captives must hold over $1.2 million annual premium.
Finally, the report revealed that the majority of BVI captives are of lower value, with an average underlying value of $500,000.
Last year, Cutts-Watson Consulting teamed up with the BVI captive insurance industry to review and reinvigorate business.
The new report, Building a Thriving and Sustainable Captive Industry in the British Virgin Islands, was intended to examine the BVI’s legislative, regulatory and business framework and define a “new vision” for BVI’s captive insurance industry.