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Captive Insurance Booms In Missouri

Friday, March 5, 2010

The captive insurance market in Missouri has seen explosive growth in the past year, with annual premium for these companies reaching just over USD1bn for 2009, up from USD123m in 2008.

The state's Department of Insurance has accredited the growth in 2009 to a new state law making the captive formation process easier.

Governor Jay Nixon signed HB577 in July of 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 also makes it more attractive for companies based outside Missouri to set up captive operations in the state.

"The new state law has worked as designed: to encourage more captive formations in Missouri," said John Huff, Director of the Department of Insurance, Financial Institutions and Professional Registration. "The significant rise in premiums shows that we have a well established captive program in Missouri.