The director and co-founder of Risk Management Advisors LLC recently explained that a shift in the industry is happening where America is gaining for captive insurance companies as compared to before. 

"Captive insurance companies being domiciled offshore has shifted and more of them are now U.S.-based," Jarid Beck of Risk Management said in a YouTube video. 

"Cayman and Bermuda, still great domiciles, there's still formation activity there, but I think a lot of it's the legacy from a time when there wasn't a lot of domestic options," he explained.

Wes Sierk, a member of Risk Management Advisors LLC, said his last knowledge as to the number of jurisdictions in the U.S. for captive insurance was at 32 total. 

“The last I saw is that there's 32 jurisdictions in the U.S. that have captive legislation,” Sierk said.

Prior to the spike in captive insurance companies in the U.S., a business had to go to Vermont, a state that caters to publicly created Fortune 500 companies and larger corporations. Most captive insurance domiciles were offshored in Bermuda, Barbados and the Cayman Islands, Beck explained. Since then, the U.S. started to look at ways to gain revenue by bringing those captives to the states.

"It has been very helpful in the U.S. promoting onshore captive companies,” Max Jong, an associate with Risk Management Advisors LLC, said in the video.

"The reason to go onshore or offshore is driven by the reinsurer,” Sierk explained. “So if the reinsurer is located in Cayman or Bermuda, they may require you to have your captive there and that's traditionally what happened.”