It surprises no one these days that captive insurance, once a rather arcane preserve of the risk management terrain, has become mainstream. What may come as a surprise is the attractiveness of a convenient tropical neighbor, sunny, pleasant and eager, right at the southern doorstep of mainland U.S.A.
Of course, we’re referring to the Bahamas, an emerging jurisdiction, which combines a high caliber of government and regulatory efficiency with a decidedly pro-business environment. Equally surprising to some may be the competitive cost structure afforded by the Bahamas, when compared to more established upper-tier jurisdictions both domestic and offshore.
Now, Atlas Insurance Management provides a third reason to consider familiarizing yourself with this forward-thinking young domicile. Under the auspices of Titan Property and Casualty, Ltd., Atlas gives you an unprecedented opportunity to avail yourself of the benefits of a Segregated Account Company structure in your risk management planning and strategy.
Indeed, Welcome to the Bahamas!
The Bahamas as a Domicile
In the world of captive insurance, the Bahamas is a relative newcomer. Almost from inception, the domicile has proved to be highly conducive for new corporations. The Bahamians have had the advantage, compared to long-established domiciles, of reviewing the experiences and lessons learned from other jurisdictions.
As a result, the legislation is sufficiently robust and the experience of working with both regulatory departments and Bahamian service providers has proved exceptional. The Bahamas is a jurisdiction that has implemented the internationally agreed tax standards by the OECD, with some 31 tax information exchange agreements (TIEAs) now in effect, including the U.S., to ensure cooperation in tax-related matters. The environment is pro-business, with proactive, approachable authorities and ample room for growth.
Finally, one must consider logistics. The location, just off the southeastern coast of Florida, is but a short flight from major markets in most of North America.
The New Titan in the Islands
Titan Property and Casualty, Ltd. was incorporated in late 2010 as a Segregated Accounts Company (SAC), to take advantage of the multiple benefits of a Bahamas location. Since inception, Titan has managed in excess of 50 segregated accounts.
While the SAC structure is common to most jurisdictions, its naming convention varies. In Anguilla, this type of structure is known as a Protected Cell Company (PCC), while the same structure is called a Segregated Portfolio Company (SPC) in the Cayman Islands and a Statutory Fund in Nevis.
Let’s get to the reasons why you should consider Titan and the Bahamas. Because the SAC structure allows for multiple captives to be housed under a single umbrella, it’s possible to have your segregated account up and running much faster than other structures would allow. In addition, the Titan alternative removes the necessity of having to appoint and manage one’s own board of directors.
Captive owners receive the benefits of a captive, but without the burden of directly managing the corporate governance or concerning themselves with the regulatory and compliance issues. These issues are all handled by a deeply experienced insurance manager. Should there ever be a change in strategy or corporate objectives, one can more easily break out and move to a separate entity. In sum, Titan provides the fastest, most cost-effective, and least intrusive option for an SAC.
The segregated account structure is not risk specific and coverages written through the segregated accounts can spread across an equally broad client mix, including manufacturing, automotive repair and maintenance, construction, healthcare, defense and technology groups.
How a Segregated Account Works
Another beauty of this unique structure is that in working with the management team you will see how easy it can be to form and manage your own insurance company and turn risk to profit. You begin by identifying the risks you want to cover. At this stage, it’s of critical importance to call in an underwriting team for a detailed discussion of suitable coverages and required limits. An actuary then reviews all the information generated in order to determine the suitable premium levels.
As the insurance manager, Atlas Insurance Management will develop and finalize the business plan, which is then submitted for licensing. In the Bahamas, this step ordinarily takes two to three weeks. As soon as approval has been granted, the segregated account is fully licensed and ready to begin writing business.
Setting up a captive as part of your overall risk management strategy has never been quite so simple. So, if you’re considering captive insurance as part of your risk management strategy, and time is of the essence to meet other contingencies and deadlines, and cost is a consideration, you should look into Titan and the Bahamas.
For more information, visit the website of the Insurance Commission of the Bahamas at www.icb.gov.bs. Atlas Insurance Management has offices in the Cayman Islands and North Carolina and is licensed in the Bahamas, Cayman Islands, Nevis, Anguilla, North Carolina, D.C, Delaware, Montana, Tennessee and Utah.