Marcy Waterfall, Senior Vice President in the Vermont office of Marsh’s Captive Solutions Group, led a [Seminar]( in The Bahamas today on “Captive Insurance Basics”. The event was hosted by BFSB in partnership with the Insurance Commission of The Bahamas and the Insurance Institute of The Bahamas – in response to wider industry interest.

Ms. Waterfall introduced her presentation with an overview of risk management concepts, for both individuals and corporations, leading into why captives are considered as risk selection and mitigation vehicles. She provided a comprehensive outline of captives, their types, structures, uses and domiciles around the world. She also spoke to US Tax Considerations, including the 831(b) US Tax Election for insurance companies earning less than $1.2 million annually. The second component of Ms. Waterfall’s presentation dealt with a Case Study following a captive from inception, through its first year financial results, expansion of its business plan, its 5-year claims history right up to the present day. Importantly, this segment also outlined the reasons why the captive succeeded. For nearly 20 years, this insurance professional has been helping companies form and operate captive insurance companies and her interactive style today was well received by the packed audience.

In speaking to the growing popularity of captives worldwide, BFSB CEO Aliya Allen noted that captives allow companies to obtain insurance coverage that is tailored to their own unique risks. In the US alone, it is estimated that over 40% of major corporations and have one or more captives. Ms. Allen said, *“We need to ensure our place in the captive space. Location is only one asset that weighs heavily in The Bahamas’ favour as a hub for this type of business. Also supporting development of the industry is the country’s highly experienced and diversified asset and wealth management industry. The fact that the foundation of the country’s financial services industry is in the latter, and that The Bahamas has recognised leadership in these areas, has enabled the jurisdiction to pinpoint the synergies this sector has with the insurance market.”*

Photo Caption: *Seminar Sponsors with Presenters (left to right) – Jamell Bodie, Manager-Supervisory & Regulatory Practices, ICB; Marcy Waterfall, Marsh Captive Solutions; Aliya Allen, CEO, BFSB; and Michele C.E. Fields, Superintendent, ICB. Missing from the photo is Yvette Ingraham, President of the IIB.*