Not Just Paper Risk: A Belgian Courtroom View on Risk Control in Captive Reinsurance Case

This article examines a recent Belgian court case on captive reinsurance, highlighting the importance of control over risk in determining transfer pricing outcomes. The court ultimately found that the Swiss captive reinsurer exercised sufficient control over risk and that the premiums it received were at arm’s length, setting a precedent for the importance of a thorough risk analysis and evidentiary standards in transfer pricing disputes.