CAPTIVES 48 (at end of 2008, according to independent supervisory authority Finma)

CAPTIVE PREMIUM CHF273.8m (€197m) at end of 2008

LEGISLATION Swiss Federal Law on the Supervision of Insurance Companies and Financial Market Authority 2007

CAPTIVE TAX RATE 0%

FEES CHF3,000, but dependent on complexity of case

REGULATOR Swiss Financial Market Supervisory Authority

Switzerland has close ties with the EU while remaining outside the Union; and many of its regulations dovetail with those of the EU. For example, although Swiss captives will not have to comply with Solvency II regulation, they will have to comply with a solvency test required by the Swiss authorities. Switzerland does not offer either protected cells or incorporated cells.

“For us, the key attraction is stability,” Marsh’s senior vice-president captive solutions, Frederick Gabriel, says. “There may not have been much growth in the past couple of years and some of that may be to do with the solvency test, but the key is a stable and consistent regime.

“Switzerland is well recognised globally and has a strong economy. It is politically stable. We may be a niche group operating here but that stability is what works for us.”

Switzerland does attract companies from around the world and, despite the lack of growth for the past three years, there is a strong feeling that it is here to stay as a captive domicile.