2017-自保公司核心理念：为风险融资战略奠定基础_24页-4mb

Summary of "Captives at the Core: The Foundation of a Risk Financing Strategy"

Core Content

This report provides an in-depth analysis of the global captive insurance market, highlighting its growth, geographic expansion, industry adoption, and evolving risk management strategies. It also outlines the benefits of captives, their structures, and the impact of regulatory and tax changes on their development.

Key Trends and Statistics

• Global Growth: The number of captives increased from around 5,000 in 2006 to over 7,000 in 2016, representing a 40% increase over the past decade.
• Market Volatility: Captive formation is not significantly affected by insurance market volatility, showing consistent growth.
• Geographic Spread: While North America and Europe remain the largest markets for captives, there is a notable rise in captives formed in Latin America and Asia Pacific.
• Premium Volume: In 2016, the total premium volume of captives reached US$39.4 billion, with North America and Europe dominating the market.
• Captive Structures: Captives come in various structures, including single-parent, special purpose vehicle (SPV), cell captive, and group captive, each offering unique advantages and flexibility.
• Tax and Regulatory Changes: The BEPS Package by the OECD has increased tax scrutiny on captives, especially those used for tax avoidance. In the US, the 831(b) election has seen changes that affect premium thresholds and risk diversification requirements.

Main Benefits of Captives

• Funding Corporate Retained Risk: This is the primary value driver for 62% of non-US and 74% of US captives.
• Risk Diversification: Captives help in diversifying risk across a parent company's economic family or by underwriting third-party risks.
• Operational Flexibility: Captives allow companies to tailor insurance solutions to their specific needs, including cyber risk, employee benefits, and terrorism.
• Cost Reduction: Captives contribute to surplus "war chests", enabling companies to reduce their total cost of risk in innovative ways.
• Tax Advantages: Tax benefits are a significant incentive for captive formation, though not the sole driver.
• Access to Reinsurance: Captives can access reinsurance directly, offering broader coverage and lower costs.

Industry Adoption

• Financial Institutions and Health Care Organizations continue to lead in the number of captives.
• Cyber Liability and Employee Benefits are among the fastest-growing areas, with 210% growth in cyber liability programs since 2012.
• Multinational Employee Benefits are increasingly managed through captives, driven by rising costs and shifting responsibilities from governments to corporations.
• Other Industries: Retail/Wholesale, Food & Beverage, and Communications, Media & Technology are also showing significant growth in captive utilization.

Captive Structures Overview

Captive Size Distribution

• Small Captives: Accounted for 44% of captives in 2016, up from 24% in 2012.
• Midsize Captives: Have also increased, with some growing into large captives.
• Extra-Large Captives: Decreased in number, now representing 20% of the market, due to industry consolidation.

Impact of Geopolitical Events

• Nationalism and Political Risk: Events such as the Brexit vote and the election of Donald J. Trump have heightened awareness of political risk among organizations.
• Uncertainty and Innovation: These events have encouraged the use of captives to manage unfamiliar and unquantifiable risks, as well as to support innovative risk management strategies.

Conclusion

Captives are becoming an essential part of a company's risk management toolkit, offering flexibility, cost efficiency, and the ability to address both traditional and emerging risks. The report highlights the importance of understanding the evolving regulatory and tax environment, as well as the strategic use of captive structures to meet the needs of diverse industries and geographies.