Domicile Submission Requirements

Domicile Submission Requirements

The Business Plan generally consists of briefly describing the business mission, as well as the objectives of the proposed captive.

Information should include:

  • Will the company be a direct insurer or a reinsurer?
  • Will the risks underwritten be related or parent/affiliate business, and/or unrelated third party business?
  • What is the relationship between the company and its client base?
  • What lines of business will be written?
  • What are the estimated gross and net premiums by line?
  • Who is the primary carrier and limits carried if applicable?
  • What is the maximum net retention by line of coverage per occurrence?
  • What are the estimated reinsurance limits and attachment points by line of coverage?
  • Copies of current policies for coverages being written.
  • Underwriting guidelines and procedures
  • Claims administration and risk management guidelines.

As part of the Submission, a five-year “pro forma” exhibit should be submitted and include the following information:

  • Capitalization
  • Gross written premium, reinsurance premium ceded
  • Investment income; other insurance income
  • Net losses and loss expenses incurred
  • Reserves for IBNR
  • General and administrative expenses
  • Taxes and other expenses

Bermuda

Bermuda

  • Bermuda is the largest & most mature captive domicile
  • Longevity, depth of experience, dependability and reliability
  • Internationally respected, robust yet flexible, regulatory environment
  • 3rd largest insurance center worldwide (after London and New York)
  • One stop shop – access to insurance and reinsurance markets
  • Tax neutrality and Tax Exchange Agreements – not a tax haven!
  • Strong professional infrastructure
  • Solid Legal System
  • Key geographical location