Credit portal




What are captive insurance companies

what are captive insurance companies


The firm practices in all areas of captive insurance company planning, including design, structuring, formation, and licensing, as well as consults on myriad issues involved in the running of a captive. The firm is also active in litigation involving captive insurance companies and their many variants, from reinsurance coverage disputes to controversies involving group captive arrangements.

The firm assists prospective captive owners and their advisors in evaluating, designing, and implementing captive solutions. The firm also reviews existing captive structures and suggests ways that they can be used more efficiently. The firm also has relationships with experienced and reputable insurance managers, actuaries, underwriters, and accountants who specialize in captive insurance arrangements.

Adkisson's Captive Insurance Companies

Jay has been active in the alternative risk management sector since 1995, and has been forming captive insurance companies since 1998, when he became a member of the first consulting firm to regularly structure and manage captives in the privately-held midrange market. For several years Jay was the owner of a licensed captive insurance management firm in the British Virgin Islands. Jay is now the current Chair of the Committee on Captive Insurance Companies of the American Bar Association's Business Law Section.

You may contact Jay Adkisson for a telephone conference or

for a speaking engagement by calling his scheduling assistant at 949.200.7753 or by e-mailing him directly to jay [at]


In its most simple form, a captive insurance company is an insurance company owned by the parent that underwrites the insurance needs of the parent's operating subsidiaries.

Until 2001, the IRS repeatedly but unsuccessfully challenged captive insurance companies as subterfuges for non-deductible self-insurance within the business. After the IRS lost its $600+ million challenge against a captive owned by United Parcel Service in 2001, the Service resigned itself to the legitimacy of captive insurance companies and soon thereafter abandoned its economic family challenges to captives. The IRS has since issued a great deal of guidance to assist captive owners in their proper structuring, management and reporting.

Nearly all major corporations have captives -- indeed, it is hard to identify a major corporation that does not have at least one captive insurance company. Some corporations have multiple captives that serve different risks. For instance, a corporation may have one captive that primarily covers the corporation's general liability, environmental liability, and product liability risks, and then another captive that insures the employee benefit liabilities of the corporation, such as workers compensation and healthcare.

Examples of corporate captives:

Category: Insurance

Similar articles: