From Comment

From Global Regulation & Policy

Offshore Captive Insurers: Are the EU's Economic Substance Requirements a Game-Changer?

These should be good times for the captive insurance sector and for other self-insurance arrangements. After the longest ‘soft’ market in recent memory (a time when insurance capacity exceeds demand and thus depresses premiums), the insurance and reinsurance markets have finally begun to turn and harden, with premium rates rising across most business lines. When insurance prices rise, large corporate insureds will look to contain their insurance spend by retaining more risk, including through the use of captives and other self-insurance arrangements.