The essential value of a good captive remains the same and, if anything, it is growing despite soft insurance markets, says FERMA Secretary General Gilbert Canaméras. Gilbert will join Katoen Natie Chief Risk Officer Carl Leeman; Matthew Latham, Head of Captive Programmes for XL Catlin and Praveen Sharma, Managing Director and Global Leader of the Insurance Regulatory & Tax Consulting Practice for Marsh, in a panel discussion of life for captives post-BEPS.
The BEPS regulations are far from the first tax measures to affect captives – and they may not be the last, Gilbert points out. He says if the captive has an economic logic, it should be able to comply with the BEPS regulations and remain useful for its owner’s risk management programme. “You need to define ‘What is a good captive?’” he says.
Captives have always been a source of cover or limits where there are gaps in what the commercial insurance market offers. “This is especially true in the future with the need for more protection for cyber risks, employee benefits and intangible assets, for example,” Gilbert explains. “Captives are also a unique source of good data, which is ever more important to reduce losses and so costs.”
This session will address the current state of the captive industry, outline the OECD BEPS action plans and their potential impact on captives and their owners, and explain FERMA’s guidelines on captive (re)insurance for national administrations and its direct dialogue with OECD. The panel will also discuss ways that risk managers can take advantage of the changes to make the best use of their captives.