Competition among domiciles is heating up as many countries and US states vie to host insurance companies and their related business, according to the November 2 BestWeek US/Canada. Regulating insurers is a good business for governments. Insurance business brings jobs without pollution and boosts tax revenue. In 2007, Vermont, the top captive domicile in the United States, and third-largest in the world, said its busy captive market brought in just about as much revenue as the state lottery.
In BestWeek Europe, over the past two decades, the number of captives around the world has almost doubled, growing from 2,535 in 1989 to 5,211 at year-end 2008. Guernsey’s position in the global captive marketplace is well established. The island is home to nearly all of the protected cell companies in Europe, BestWeek reports.
And in BestWeek US/Canada, capital and surplus for the top 25 US health writers — comprised mainly of nonprofit Blue Cross Blue Shield companies — declined 11.6% to $46.1 billion at year-end 2008, an AM Best Statistical Study shows. For the total US health and health maintenance organization industry, capital and surplus dropped 7.6% to $95.5 billion.
The study was based only on data from companies that file a National Association of Insurance Commissioners’ health annual statement, which is filed with state regulators, said Richard F. Kirk, senior business information analyst with A.M. Best.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
Source: OLDWICK, N.J. 10.30.2009. (BUSINESS WIRE)
BestWeek: Competition among insurance domiciles heats up
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