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Offshore captive insurance is becoming increasingly popular as corporations gain a better understanding of how offshore captive insurance works and laws are established to enable companies to set up offshore captives. Through the offshore captive insurance sector, companies are now equipped with another, effective and practical strategy that can be used to manage risks, while at the same being in control of their corporate insurance.

Offshore captive insurance companies are established mainly to cover the risks and assets of a parent company and can be used either as a reinsurance or insurance company. This makes captive insurance a type of offshore insurance that is internal to an offshore company, making the purpose for which it was created limited, making its services restricted from being extended to the public. Our firm specializes in introducing investors and private individuals to alternative methods of asset protection and wealth preservation, our agents are on standby to answer questions. To receive information on dual nationality stkittscitizenship.com, citizenship by investment programs and offshore company registration, simply submit an inquiry. Dominica Economic Citizenship by Investment provides two avenues for applying for citizenship that are safe and promotes real estate investments and home ownership.

There are many reasons why offshore captive insurance is so popular nowadays, one being the need by offshore insurance companies to be able to insure themselves adequately and in function of the type of assets and risks that they acquire. Furthermore, because the traditional form of insurance can be so expensive to maintain, and prove to be difficult in terms of getting an insurance policy that can be tailored to suit the needs of companies in covering their risks and assets, offshore captive insurance has proven to be an effective solution. Given the diverse range of assets that offshore insurance acquire nowadays, it is difficult to obtain insurance companies that are willing to insure such risks.

Regular insurance companies are also increasingly designing their credit rating without taking into consideration the circumstances under which losses are incurred, and instead consider market trends, which complicates approval for insurance coverage. Other companies are also left without insurance coverage because of having insufficient credit for insurance coverage and showing to have very low or weak loss control, causing them to be classified as ineligible for insurance coverage by insurance companies.

Offshore captive is classified into five main groups. These include single parent offshore captives, association captives, group insurance offshore captives, offshore rent-a-captive and offshore agency captives, depending on the purpose for which the offshore captive insurance company is formed and the type of owner; be it a group, individual or association. As such, single parent offshore captives are established by a parent company or its affiliates which are not engaged in any type of insurance business to insure their risks, by forming an offshore reinsurance or insurance company. A group of companies may also come together and establish a group offshore captive to insure a common insurance need that is shared by all companies within the group, whilst on the other hand, a rent-a-captive can be established to offer offshore captive insurance services and benefits to small to medium size enterprises and companies that are financially unable to create offshore captive insurance company on their own, for a moderate fee. Similar to the group offshore captive, an association offshore captive is created to insure the assets and risks of member companies, industries, service or trade organisations or group in the association. And finally, agency offshore captive are offshore reinsurance companies that offshore insurance companies establish to reinsure the risks and assets of their clients.

In light of the structure and grounds on which offshore captive insurance companies are founded, they are of major financial benefits to companies, who are capable of devising a suitable premium plan that does not result too difficult for the insurance and offshore companies that are involved. This is because over head costs and profit margins are not included in the premiums, making them much lower than usual. Offshore companies are also able to adjust the amount of risk that the offshore captive insurance or reinsurance will assume based on their judgment of the different economic and market factors at play.

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