What does Offshore Captive mean? Read on to discover the definition & meaning of the term Offshore Captive - to help you better understand the language used in insurance policies.
A special purpose insurance company domiciled outside of the country where the insured risk is located. The motives for using an offshore captive may include tax planning. Regulatory differences between onshore and offshore have become significantly less as the offshore captive industry has matured. Offshore domiciles popularly used for North American source business include Barbados, Bermuda, British Virgin Islands, and Grand Caymans. Offshore domiciles for European source business include Dublin, Guernsey, Isle of Man, and Luxembourg. Asian source business may use Hong Kong, etc.
We hope the you have a better understanding of the meaning of Offshore Captive.