domicile

An insurer's domicile is the jurisdiction, typically a state or country, where it is formed or incorporated. The domicile determines the regulatory authority that is principally responsible for overseeing the insurer. For a captive insurer, the domicile is the location in which it is licensed to conduct insurance business.

Several factors that must be considered when selecting the most appropriate and best domicile for a given captive insurer include capitalization and surplus requirements, investment restrictions, income and local tax obligations, formation and ongoing operating costs, acceptance by fronting insurers and reinsurers, availability of banking and other services, and geographic proximity.