Captives in Missouri continue to grow strong in 2023
The Missouri Department of Commerce and Insurance (DCI) Captive Insurance Program licensed its last three 2022 captive companies of the year on December 22 and its first 2023 captive company on January 12.
2022 was a great year for the program, as we expanded into the sponsored captive realm by licensing our first sponsored company—while also adding seven pure captives. These new captives increased our reach into construction, banking, financial/investment, transportation, and warranty industries throughout the US and both on and offshore. Our program ended 2022 with 54 active captives, tying Missouri’s record high from 2018. Only five companies voluntarily discontinued their licences because of their business decision to no longer write premiums after several years of run-off in effect.
As we turned a new leaf into 2023, DCI director Chlora Lindley-Myers was elected as the National Association of Insurance Commissioners (NAIC) president and reaffirmed her commitment to supporting the captive industry in a video with the following message:
“In Missouri, we’re known as the Show-Me State. That’s more than a state motto. What that means is we believe in doing more than just saying we can do something—we show you we can.
“When it comes to the Show-Me Captive program, we believe in supporting our business community and providing options for them to manage their risk. We also believe that the number of captives a state has isn’t the only thing a business should consider. There’s more—a lot more.
“In Missouri, we look at the strength and success of the companies domiciled here. The companies that have captives in Missouri are strong and successful, and our team is devoted to helping them protect that success. It’s great for businesses, and it’s great for Missouri.”
With that confirmed commitment, the team with the Missouri Captive Insurance Program quickly went to work to make this vision a reality for 2023. It’s a vision that isn’t focused only on the volume of captives we license in a single year, but the overall quality of service and support we provide the captive community for years to come.
Historically, Missouri has addressed the needs of the captive community with a work-from-anywhere mentality, maintaining flexible laws, and including a devoted team with rooted experience in growing and protecting captive success. That is evident in our 2021 numbers of 51 active captives with a gross written premium of $4.7 billion.
Lindley-Meyers added: “We believe in doing more than just saying we can do something—we show you we can.” Thereby, 2023 will be a year of communicating with stakeholders and looking for ways to amplify our support for a global industry with innovative ideas that encourage ongoing growth, while also protecting success.
Encouraging captive insurance growth is one aspect of our philosophy, but an equally important element in this environment is protecting the success and strength of our current captive insurance companies. This is accomplished by providing necessary oversight that does not stagnate growth, but rather protects these companies from outside scrutiny. Missouri will stand strong on this commitment as we work together to find solutions in this ever-changing captive world.
Sam Komo is Captive Manager at the Missouri Department of Commerce & Insurance. He can be contacted at: email@example.com