Captive Domicile Comparison
| Domicile | Regulatory Environment | Tax Treatment | Best For |
|---|---|---|---|
| Vermont | Rigorous; well-established | US tax treatment | US employers seeking domestic domicile |
| Cayman Islands | Flexible; business-friendly | Tax-neutral | Employers seeking offshore flexibility |
| Bermuda | Sophisticated; well-established | Tax-neutral | Large captives; complex structures |
| Delaware | Emerging; business-friendly | US tax treatment | Employers preferring East Coast domicile |
Captive Governance
Captive governance requires: (1) a board of directors with independent members; (2) annual financial audits by a qualified auditor; (3) actuarial certifications of loss reserves; (4) annual regulatory filings with the domicile regulator; and (5) compliance with the domicile's minimum capital and surplus requirements.
Captive Management
IQ Insight
Most employers use a captive management company to handle day-to-day captive administration — regulatory filings, financial reporting, board meeting support, and vendor coordination. Captive management fees typically range from $25,000 to $75,000 per year. The captive management company is a critical partner — select one with deep experience in health captives specifically.