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Work in Progress Work Is Underway to Boost Captive Growth in Hong Kong but Will Updated Legislation Be Enough to Draw in New Captives?

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Work in Progress Work Is Underway to Boost Captive Growth in Hong Kong but Will Updated Legislation Be Enough to Draw in New Captives? www.captiveinsurancetimes.com The primary source of global captive insurance news and analysis 27 May 2020 - Issue 199 Work in progress Work is underway to boost captive growth in Hong Kong but will updated legislation be enough to draw in new captives? Barbados Insight CIC Services vs IRS Emerging Talent Justin Cole of DGM Financial Sean King of CIC Services discusses Mike Scott Group discusses the current the firm’s upcoming case against Assistant vice president captive climate in Barbados the IRS in the Supreme Court Global Captive Management Captive Insurance Times Issue 199 www.captiveinsurancetimes.com Published by Black Knight Media Ltd 16 Bromley Road, New Beckenham Beckenham, BR3 5JE Editorial Editor: Becky Bellamy [email protected] Tel: +44 (0)208 075 0927 cover image by weerasak_saeku/shutterstock.com Reporter: Maria Ward-Brennan [email protected] Tel: +44 (0)208 075 0923 Contributor: Maddie Saghir [email protected] Designer: James Hickman [email protected] Marketing and sales Associate Publisher: John Savage [email protected] Tel: +44 (0)208 075 0932 Publisher: Justin Lawson [email protected] Office Manager: Chelsea Bowles Tel: +44 (0)208 075 0930 Follow us on Twitter: @CITimes Copyright © 2020 Black Knight Media Ltd All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without permission in writing from the publisher. Company reg: 0719464 www.captiveinsurancetimes.com WE KNOW CAPTIVE INSURANCE. For more than 70 years, no firm has had a more complete understanding of the captive and self- insured market than Milliman. With our global reach, we routinely advise multinationals on cross-border transactions and how to meet each domicile’s unique requirements—key in today’s captive environment. milliman.com/captives [email protected] 1349PCP_Captive Review_20200211.indd 1 2/12/20 12:09 PM Contents News Focus page 7 In this issue Barbados Insight Justin Cole of DGM Financial Group discusses the current captive climate in Barbados, new regulation, and what the industry can expect to see over the next 12 months page 13 Hong Kong Outlook Work is underway to boost captive insurance market growth in Hong Kong but will China’s Belt and Road Initiative and new legislative changes be enough to draw in new captives to the region? page 16 CIC Services vs IRS Sean King of CIC Services discusses the firm’s upcoming case against the IRS in the Supreme Court, what a win would mean for the industry, and the support they are receiving page 28 Emerging Talent Industry Appointments The latest comings and goings in the captive Mike Scott, assistant vice president, Global Captive Management insurance industry page 25 page 31 Set up an EU based protected cell with the independent experts Capital, time & cost efficient alternative to a standalone insurer or captive Direct access to the UK and EU market People you can trust Contact us on t: +356 2343 5221 | e: [email protected] | www.atlaspcc.eu Atlas Insurance PCC Limited is a cell company authorised by the Malta Financial Services Authority to carry on general insurance business. 5 www.captiveinsurancetimes.com ReinsuranceReinsurance Trust Trust Services Services ReinsuranceReinsurance Collateral Collateral Trusts Trusts Why chooseWhy an choose an Insurance Trust?Insurance Trust? TheThe limitations limitations and and costs costs associated associated with traditionalwith traditional collateral collateral options suchoptions as Letters such as Letters ofof Credit Credit have have dramatically dramatically fueled fueled the growth the growth of alternative of alternative risk transfer risk strategiestransfer strategies • Improved Credit• Improved Availability Credit Availability amongstamongst insurers, insurers, reinsurers, reinsurers, captives captives and corporations. and corporations. Fluid regulatory, Fluid regulatory, financial and financial and – an insurance –trust an insuranchas e trust has riskrisk management management environments environments demand demand lower-cost lower-cost collateral collateral solutions solutions – solutions – solutions no adverse impactno adverse on your impact on your thatthat afford afford maximum maximum flexibility flexibility with withminimal minimal effort toeffort set-up to andset-up maintain. and maintain. available credit.available credit. It’sIt’s a a need need that that has has given given tremendous tremendous traction traction to the insurance-linkedto the insurance-linked securities securities • Cost Effective• Cost– insurance Effective trusts – insurance trusts (ILS)(ILS) market market and and in particularin particular the emergencethe emergence of reinsurance of reinsurance collateral collateral trusts. trusts. generally save yougenerally in annual save you in annual fees comparedfees to other compared forms to other forms TheThe SunTrust SunTrust advantage advantage of collateral postingof collateral options. posting options. SunTrustSunTrust has has a longa long history history of escrow, of escrow, trust andtrust risk and management risk management excellence excellence and and expertise,expertise, with with both both domestic domestic and internationaland international coverage. coverage. We work We with work large with and large and • Convenience• –Conv insuranceenience trusts – insurance trusts smallsmall carriers carriers alike alike to helpto help mitigate mitigate risk for risk their for insurance their insurance business business needs. needs. are tri-party arrangementsare tri-party that arrangements that OurOur collateral collateral trust trust product product at SunTrust at SunTrust can help can you help with you the with following the following require no annualrequire renewals. no annual renewals. insuranceinsurance needs: needs: • Reduced Liability• Reduced Concerns Liability Concerns •• ReiReinsurance/Collateralizednsurance/Collateralized Reinsurance Reinsurance• Surety• BondsSurety Bonds – insurance trusts– insurance may limit trusts may limit •• RegRegulationulation 114 114 Trusts Trusts • State• StatuteState TrustsStatute Trusts the range of acceptablethe range of acceptable •• CaCaptivesptives • Collateral/Depository• Collateral/Depository Accounts Accounts investments; thisinvestments; is done this is done to ensure adherenceto ensure to all adherence to all OurOur expertise, expertise, however, however, is only is only one aspectone aspect of what of differentiates what differentiates our reinsurance our reinsurance regulatory requirements.regulatory requirements. trusttrust business business from from other other firms. firms. Additionally, Additionally, we excel we because excel because of: of: • •A ADed Dedicatedicated Single Single Point Point of Contact of Contact – we steadfastly – we steadfastly believe in believe the value in ofthe a value of a dedicateddedicated client client manager manager who knowswho knows the unique the uniquechallenges challenges of your business of your business andand quarterbacks quarterbacks your your relationship relationship with the with bank. the bank. • •RapiRapid Responsed Response Times Times – while – while other otherbanks bankscan take can weeks take to weeks respond, to respond, SunTrustSunTrust can can typically typically resolve resolve covered covered loss requests loss requests in a matter in aof matter 24-48 of 24-48 hours;hours; and and because because we’re we’re a custodian a custodian for the forcollateral the collateral that secured that the secured the contract,contract, insurers insurers get paidget paidimmediately. immediately. • •OpeOperationalrational Efficiencies Efficiencies – from – frompre-arranged pre-arranged agreements agreements with major with major insuranceinsurance carriers carriers to streamlined to streamlined onboarding onboarding and KYC and processes, KYC processes, our our knowledgeknowledge of theof thereinsurance reinsurance trust businesstrust business helps ensure helps that ensure things that are things are donedone right right and and done done fast. fast. ToTo find find out out more more about about how how SunTrust SunTrust can support can support and enhance and enhance your reinsurance your reinsurance business,business, please please contact: contact: DonnyDonny Tong Tong JosephJos Mephona coMonaco Barbara AubryBarbara Aubry SVP,SVP, Business Business Development DevelopmentVP, CVlientP, C Malientnagement Management SVP, BusinessSVP, DevelopmentBusiness Development 212.590.0976212.590.0976 212.303.1746212.303.1746 212.303.4164212.303.4164 [email protected]@suntrust.com [email protected]@[email protected]@suntrust.com News Focus Babel Cover begins testing for digital bicycle insurance Babel Cover, a technology startup, has started development for its range of digital first inter-connected financial services products, following its announcement for the project in A.M. Best affirms Lion Re ratings December last year. A.M. Best has upgraded the financial strength A.M. Best explained: “The company continues As a first phase, it has released a fully digital insur- rating to A (Excellent) from A- (Excellent) and to support ASSA Tenedora’s strategy while ance product with the Maltese insurer Atlas and the long-term issuer credit rating to “a” from producing positive bottom-line results
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