Insurance specialist A.M. Best’s newly published Captive Directory reports that there were 245 new captive insurance companies formed last year, while 170 were liquidated, a net gain of 31.6 percent over 1999. Best predicted further growth in 2001, “due to a continued firming trend in prices in commercial lines, and in spite of pressures from a deteriorating stock market and regulatory authorities.”
“By year-end 1999, the alternative insurance market comprised nearly 40% of the total commercial market in the United States, and A.M. Best believes that market share will approach 50% in 2003,” the report stated.
Bermuda is still the leading domicile for captives with 1405 – 31.5 percent of the world’s total. It’s nearest rival, The Cayman Islands, is home to 535 captives. The next 8 according to Best’s Directory, are Vermont, Guernsey, Luxembourg, Barbados, The British Virgin Islands, Ireland, The Isle of Man and Hawaii. The total number of Captives is 4,458.
The Directory cites “accelerated growth in Europe and Asia; greater transparency in offshore captives; a move by health care captives into insuring medical malpractice for on-staff physicians; and more companies in the United States diverting their life and health benefits into alternative market vehicles such as captives,” as factors which have caused recent growth.
A copy of the Directory may be ordered by telephone from A.M. Best’s Customer Service at (908) 439 2200 ext. 5742.
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