Utah: middle market demand is significant
Ross Elliott, Utah’s captive director, told A.M. Best that the middle market’s demand for captives is such that the State alone could not satisfy its needs.
He said: “if Utah were to attempt to handle all of this ourselves, we would not be able to satisfy the demand from the middle-market businesses who are demanding to have the opportunity to participate in captive insurance now, so we welcome these new states [passing captive legislation] and are willing to help them out.”
Utah itself has grown at 60 to 65 captives a year. Elliott added: “we’re probably doubling other states that are doing very well in terms of their captive formation numbers.”
Brad Eichers, CEO of Kornerstone Insurance in Utah, told Captive International: “Utah has a lot to offer mid-size companies looking to establish captives. They provide lower operating costs, and Utah regulators are easy to work with and friendly. Utah wants companies to do work here because it creates jobs and economic activity in their state. Utah is willing to work with new captives by providing more staffing and resources.”
As Elliott told A.M. Best: “we wanted to make sure that our department was completely funded, so that in the event of any contractions in the economy, we would have sufficient funds to hire enough people and provide enough regulatory services for the community that’s demanding them.”