UK offshore havens face new challenge from the US state of Ohio

The Isle of Man, Dubai and Guernsey, all known as captive domiciles, are being joined by a new rival – the US state of Ohio.

Legislation has recently been signed meaning that businesses will be able to create captive insurance companies in the state in order to cater for their own insurance needs.

Ohio joins a number of other states which allow captives, meaning it already has some competition. The state of Vermont, for example, is known for actively courting them.

Last year, Vermont’s governor, Peter Shumlin, announced that the state had licensed its 1,000th captive insurance firm.

Captives, which are set up to deal with a parent company’s insurance needs, can be attractive to host states because of their potential to bring in potential jobs and tax revenues.