Barbados' Captive Insurance Industry

EC: Tell us a little about the development of the Captive industry in Barbados. 

NC: The Captive industry in Barbados dates back more than 30 years, around the time we opened an office for Marsh Captive Solutions. The growth of the industry, in its formative years, was aided by a Federal Excise Tax exemption, which saw several US-owned Captives being established at that time. After the exemption was discontinued, growth in US business slowed. However, the tax treaty with Canada supported growth in Captives from that country. Although Canada recently signed tax information exchange agreements with various countries, which reduced the competitive advantage that Barbados had for Canadian-owned Captives, through our significant history with Canada and recognition in that country, we have been able to maintain our position as a domicile of choice for Canada. More recently, we have signed a treaty with Mexico and are working to develop the same with other countries in Latin America. We see that region as a growth area for Barbados in the future. 

Footnote: Ezra Catwell (EC), Director, Investment Facilitation, Invest Barbados interviewed Nicholas Crichlow (NC), Marsh Captive Solutions.

Source: Barbados International Finance & Business 2017

Click here to read more...