Editorial

Chiedo Nkwocha–Editor

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US Captive - ISSN 1751-0678 Cover: ©iStockphoto.com/photo168

The faltering global economy may still be casting a shadow of uncertainty over the market, but a wise move might be to consolidate one’s position in anticipation of an eventual upturn.

Smart thinking dominates this issue of US Captive.

Not just in terms of the attention being paid to training up the next generation of insurance managers, a programme expounded by South Carolina (page 37). Nor that captive managers are drawn to states because of their knowledgeable regulators, as testimonials praising Arizona attest (page 40). It’s also because, like a mechanic tuning an engine for maximum performance, captive domiciles are tweaking their legislation to increase their overall attractiveness. This year’s domicile survey is full of success stories (page 51).

Meanwhile, the faltering global economy may

still be casting a shadow of uncertainty over the market, but a wise move might be to consolidate one’s position in anticipation of an eventual upturn. Marsh Captive Solutions Group believes that a strategic review of your captive is a necessary first step in the right direction (page 26).

Another step to combat the squeeze on available

capital would be to consider cheaper alternatives to the industry-standard letters of credit. Reinsurance trusts, says Wells Fargo (page 22), are fast becoming a viable alternative.

Attention to detail, security and stability are the

drivers behind Vermont’s continued success as a domicile (page 34), while recent domicile entrants Missouri and Nevis are putting in place their own strategies to establish a market presence (pages 44 and 48, respectively).

We are also treated to two master classes from leading practitioners in the field. The first focuses on the implications of tax regulation 831(b) (page 18), while the second reveals in detail the workings of an organisation championing risk retention groups (page 14).

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