BCLP's Captive Insurance Team has extensive experience in the captive insurance and alternative risk transfer areas of the insurance industry. Our services include assisting clients with the design, formation and licensing of captive insurance companies, including pure (single parent), group, agency, cell and association captives, and advising on related regulatory compliance issues. Our Captive Insurance Team’s clients are based in various jurisdictions including Fortune 500 companies, national associations and privately held businesses. 

We have extensive experience on the corporate, regulatory and tax aspects of captives. We assist clients with the creation of optimal capital structures for captives, including the design of financial instruments unique to the insurance industry, and help clients meet their captive's insurance regulatory, financial and investment requirements. Our lawyers also have a thorough understanding of the reinsurance arrangements used by captives, including collateralization requirements and financial statement credit for reinsurance obligations. We have been at the forefront on the use of captive insurance companies to provide employee benefits coverages, as well as more traditional coverages. We also advise and structure risk purchasing groups and risk retention groups for various industries.

Representative Experience

  • Formation of a captive insurance company for a Fortune 100 company to provide prescription drug stop loss insurance to its customers, including the creation of a specialized insurance policy unique to the industry, the design, formation and licensing of the captive and the negotiation of reinsurance agreements; 
  • Formation of an association captive insurance company that offers health insurance through a fronted reinsurance arrangement to members of an association made up of over 5,000 member firms throughout the U.S., including the negotiation of reinsurance agreements with several health insurers; 
  • Assisted publicly-held corporation with the formation of a captive insurance company for the purpose of insuring workers' compensation insurance deductibles for subsidiaries of the corporation, and issued a federal income tax opinion with respect to the deductibility of premiums paid by the subsidiaries to the captive insurance company; 
  • Representation of an international car rental operation with regard to restructuring its insurance requirements both domestically as well as with its Bermuda captive, including the organization of agency arrangements; 
  • Advised an international corporation on the legal issues arising under ERISA associated with the formation of a wholly-owned captive insurance company to provide health insurance coverage with respect to employees of the corporation; 
  • Representation of an international consultancy firm in relation to its insurance and reinsurance arrangements, particularly from a tax perspective, of its Bermuda captive; and 
  • Represented one of the world’s largest public accounting firms in connection with the sale of its U.S. captive insurance company to its Bermuda based affiliate and negotiation of related reinsurance and retrocession agreements.