Yesterday a federal court in Houston handed down its ruling in Drake Plastics Ltd. Co. v. Internal Revenue Service, and within 48 hours we'll be drowning in hot takes from people who've never read a Tax Court opinion on captive insurance substance
Last summer, when Louisiana signed the CHOICES Law into effect, it marked the state's first major captive statute update in 17 years. The legislative victory was celebrated as a clear signal that Louisiana was ready to compete in the rapidly expanding alternative risk transfer space. But modernizing a statute on paper is only the price of admission to the captive industry. It does not guarantee a functioning, stable domicile.
A coastal residential property owner managing over $1 billion in total insured values across 10,000+ units partnered with C.I. to secure a $1 million property policy and a $400k per occurrence / $5 million aggregate general liability policy. The captive retains 85% of premium on AM Best A+ XV Admitted paper. At renewal, C.I. delivered a near 30% rate reduction.
Social inflation — the trend of rising insurance claim costs driven by legal, societal, and litigation factors beyond economic inflation — has become a structural reality reshaping casualty risk across every commercial line. What was once a concern concentrated in commercial auto has expanded into general liability, products liability, umbrella and excess layers, and professional liability. Jury verdicts, settlement demands, and litigation costs continue to rise at rates that far outpace general economic inflation.
If you own a commercial building with no meaningful catastrophe exposure, 2026 feels great. Carriers are calling your broker. Renewals are coming in with real rate decreases — not token concessions, but 5–15% reductions that reflect genuine competition for your business. After years of painful increases, there's finally breathing room.
The Western Region Captive Insurance Conference (WRCIC) is the premier regional event for captive insurance professionals across the western United States. Hosted annually, the conference brings together captive owners, risk managers, regulators, and service providers for focused discussion on the issues shaping the captive industry — from regulatory developments and domicile trends to emerging risk strategies and program design.
How a captive turned a $4 million of sunk cost into a profit center.
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