March 2, 2010
Captive insurance becomes a billion-dollar industry in Missouri in 2009
Jefferson City, Mo. - The captive insurance market in Missouri has seen explosive growth in the past year, with annual premium for these companies reaching just over $1 billion for 2009. That's up from $123 million in 2008. The Department of Insurance licensed three new captives in 2009 and says the industry has expanded largely because of a new state law making the captive formation process easier.
Gov. Jay Nixon signed HB577 in July of 2009, simplifying the process of moving offshore captive operations to Missouri. The omnibus insurance bill makes also makes it easier for companies to bring their captive operations to Missouri by removing certain financial and investment restrictions and expanding organizational options for captives. The law also makes it more attractive for companies based outside Missouri to set up captive operations here.
The new state law has worked as designed: to encourage more captive formations in Missouri, said John M. Huff, director of the Department of Insurance, Financial Institutions and Professional Registration (DIFP). $1 billion in premium volume shows we have a well established captive program in Missouri and that it's a priority for our department.
Similar to self-insurance, a captive insurance company is formed to insure some of the risks of its owner and subsidiaries.
Companies interested in bringing captive operations to Missouri can contact John Rehagen, DIFP Captive Program manager, by e-mail or 573-522-2563, or online. Rehagen will attend the Captive Insurance Companies Association International Conference in Orlando, Fla., March 7 through 9. In particular, he will attend the conference breakout meetings with domiciliary regulators Monday March 8 from 4:30 p.m. until 5:30 p.m.
About the Missouri Department of Insurance, Financial Institutions & Professional Registration
The Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP) is responsible for consumer protection through the regulation of financial industries and professionals. The department's seven divisions work to enforce state regulations both efficiently and effectively while encouraging a competitive environment for industries and professions to ensure consumers have access to quality products.