(Re)insurance captives will wait before being released

It’s only a good bye. The revision of the tax framework intended to encourage the development of (re)insurance captives will not take the form of an amendment in the Finance Bill (PLF) 2022, revealed on Wednesday News Insurance Pro. Confirmed information at Agefi by Bercy.

Captives, which are internal structures allowing a company to self-insure, are popular because of the evolution of risks which are driving up insurance premiums. The government had made a commitment to LREM MP Valéria Faure-Muntian to make them more attractive. The president of the insurance study group at the National Assembly had drawn up a regulatory framework in two amendments to the PLF 2022, which she finally withdrew. It took the form of a provision for claims smoothing capped individually by risk category according to a multiple of the amounts of premium acquired and proposed a period of 10 years before the unused provisions are reported to the taxable profit of the 11th year. .

Such a frame must be precisely calibrated to be fully appropriate for its purpose. It also requires an agreement from the European Commission. The Government has therefore decided to first submit, by the beginning of December, its project to the European Commission“, explains Bercy, who evokes a final version in a next finance law.

Luxembourg is not about to see France overshadow it. The Grand Duchy attracts many captives thanks to its system of provision for fluctuation of claims requiring reinsurers to reserve technical results which makes it possible to pool good and bad years. Other countries, such as Malta or Ireland, also have such a system.

Only eight French groups have domiciled their captive in France, while the president of the Association for the management of business risks and insurance (Amrae), Olivier Wild, estimates that around fifty French companies are waiting for conditions more attractive domiciliation to take the plunge. Work has been underway for more than two years with the public authorities on the subject. After the mobilization of the Place de Paris, the pressure mounted on Bercy, who was not mistaken: despite this setback, “the government confirms its ambition to encourage medium-sized companies and large companies to self-insure by setting up reinsurance captives via a revised tax framework for provisions“.

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