The captive insurance market in Missouri has seen explosive growth in the past year, state regulators say, with annual premium for these companies reaching a little more than $1 billion for 2009.
By comparison, premium for captives in Missouri in 2008 totaled $123 million.
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 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.
Source: Missouri Department of Insurance, Financial Institutions and Professional Registration
Topics Missouri
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