January 21, 2011
Missouri's captive insurance companies double in 2010
Show-Me State a fast-growing captive domicile
Jefferson City, Mo. - The captive insurance market in Missouri continues to see rapid growth, with the latest sign being a doubling of licensed captives in the past year. There were six licenses at the end of 2009, and 12 at the end of 2010, an indication of Missouri's attractiveness as a captive domicile. Another indicator: Missouri began licensing captives in 2007, and by 2009, premium volume had reached $1 billion.
Gov. Jay Nixon signed House Bill 577 in July 2009, simplifying the process of moving offshore captive operations to Missouri. The omnibus insurance bill 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 makes it more attractive for companies based outside Missouri to set up captive operations here.
"We asked the state legislature for this law to encourage captive growth in Missouri, and it has worked as designed," said Insurance Director John M. Huff. "New laws, doubling our captives and dramatic gains in premium volume show that Missouri is a strong captive domicile with a commitment to this area of insurance."
The growth of the captive insurance industry contributes to Missouri's economy through premium tax collections, as well as bringing high-paying support jobs, including attorneys, CPAs, actuaries, a captive association and more.
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, phone at 573-522-2563, or online. Rehagen will be available for meetings at the upcoming Captive Insurance Companies Association International Conference March 13-15.