OREANDA-NEWS. In this A.M. BestTV episode, which wraps up the third day of the annual Vermont Captive Insurance Association (VCIA) conference, captive regulators from South Carolina, Vermont and Tennessee review captive oversight, including a strategy that has some domiciles offering tax breaks to captives that re-domesticate.

“There is a lot of competition among domiciles, and re-domestication is a very cohesive way to go about it,” said Jay Branum, director, captive insurance, South Carolina. “This re-domestication is sort of a blunt instrument, which is market-disrupting and interferes with the free choice of a captive to maximize its self-interest.”

Branum also said he believes that the self-procurement tax should not be the dominate factor for captive owners to choose where they want to domicile their captives. Owners, he said, should be able to capitalize their companies and structure their programs based on what is best for them.