Jefferson City, MO – The Missouri Department of Insurance recently announced it has licensed its 25th captive insurance company. The Show-Me State began allowing captive formation in 2007 and had just three licensees before Gov. Jay Nixon signed House Bill 577 in 2009.
The 2009 law simplified the process of moving offshore captive operations to Missouri and made it more attractive for companies based outside Missouri to set up captive operations here. The law 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.
Missouri captives in 2011 saw $1.9 billion in premium volume. The captive insurance industry contributes to Missouri’s economy by bringing high-paying support jobs, including lawyers, CPAs, actuaries, consultants and a captive industry association.
“The Show-Me State has shown the insurance and business communities that we have an outstanding domicile for captive formation,” said John M. Huff, director of the Missouri Department of Insurance. “These significant milestones in number of captives and premium volume demonstrate Missouri’s commitment to a healthy, sustainable and long-term captive industry.”
By the end of the year, Huff expects the number of captives to top 30 and premium volume to exceed $3 billion.
Companies are using their Missouri captives to finance deductibles for workers’ compensation and other property and casualty lines, life reinsurance, professional and general liability, commercial auto and more.
Similar to self-insurance, a captive insurance company is formed to insure some of the risks of its owner and subsidiaries.
Source: MO DOI