The captive insurance market continues to dominate the Federated States of Micronesia (FSM) insurance market in terms of the number of domestically licensed insurers, volume of insurance business, and contributions to FSM's local and national economies.
FSM domiciled captive insurance companies are currently exclusively owned by large profitable Japanese-based companies, of which approximately 60% are registered as publicly traded companies in major stock markets in Japan, United States and other established markets.
Since the enactment of FSM's captive insurance law in 2006, 27 captive insurance licenses have been issued through 2018, and 2 licenses were voluntarily terminated in 2018, bringing the total actively licensed captives at the end of2018 to 25. The terminations are the result of changes in the risk financing strategies of the captive’s parent company. The decline in net licenses issued in 2018 is consistent with
the trend of other captive insurance jurisdictions and is generally due to increased competition from more captive domiciles, and changes in captive owner's tax and/or operating environments that reduce the efficiencies of utilizing a captive insurance program.
Tha table below present the numbers of captive licensing in FSM from 2009 to 2018.
Owners of FSM licensed captive insurance companies operate in a diverse range of domestic and international markets and industries including but not limited to the following categories:
Trade and Commerce
Financial Services
Real Estate and Construction
Manufacturing
Transportation
Information Technology and Communications
FSM country in the western Pacific Ocean composed of more than 600 islands.The total ocean area within the perimeter of the islands is 7,400,000 km2.
The top 3 industry of FSM are farm and fishery, Finance and travel industry. Subsistence farming occupies half of the adult population. Of the adults
working in the cash economy, more than half are employed in the public
sector, earning 58% of total national wages.
Though the FSM captive industry only permitted by law from 2006 with first captive set up till 2009, it captive market grew fast in Asia-Pacific region. Since then, newly captives established every year, making FSM the top 3 most captive domicile in Asia-Pacific region by now.
By the end of 2017, the premium of Micronesia captives reach 152 Million US dollor, registered captital was 253 Million Million US dollor, total asset to 370 Million US dollor.
