With the growth in the programme, the service provider base has grown significantly. There are now 11 captive managers approved in the state. Four managers are capable of providing management directly from their Missouri offices and others have captive consultants in the state as well. There are 11 actuaries approved to certify reserves for captives, and the St. Louis office of Milliman Inc. provides services for the department for life and health captives. There are eight certified practising accountant firms approved to conduct independent audits, half of which provide services from within the state. There are over a dozen Missouri attorneys that provide legal and other services for our captives. One of the benefits gained from locating your captive in Missouri is the infrastructure that is available in our large cities such as Kansas City and St. Louis. There is also flexibility to allow for the use of your existing legal, audit and actuarial relationships if desired through a relatively painless approval process.


In an effort launched by captive experts in the state, Missouri’s captive insurance association, MOCIA, was formed in November of 2010. Its goals are to promote captive formations in the state by providing information, facilitating communication between its members and with the department, and to provide captive education. The president of MOCIA is Michael Mead, the 2011 CICA distinguished captive service award winner and well-known industry veteran. Michael has been a part of the success of other domicile associations and brings experienced, high-profile leadership to his position with MOCIA. David Dimit, the executive director of the association, has nearly 30 years’ experience both as a captive member and president, as well as a consultant in captive formations. He now brings his talents and experience to promote captive insurance in Missouri. As David puts it: “Our association intends to promote the advantages and benefits of the flexible, sensible and economical captive climate promoted by the Missouri Insurance Department. Missouri is poised to become one of the sought-after captive domiciles because of the ease of formation and the low costs of operations. We already have association members from across the US working to make our state even more responsive to the needs of captive companies.”


MOCIA will participate in hosting the Western Region Captive Insurance Conference in September of 2011 and expects to promote educational seminars throughout the area. The department is supportive of MOCIA’s goal of facilitating captive growth in Missouri.


Missouri has some other unique opportunities for potential captive applicants to explore. There are a number of very large commercial insurers either based in the state or with major operating arms located here. Examples include RGA Reinsurance Company, Swiss Re, AIG, Met Life, American Financial, Arch Capital Group and Allianz SE, to name but a few. Many of these companies actively front and provide reinsurance for captive insurance companies; some also provide captive programme design. Because the commercial insurer and the captive are both regulated and considered admitted insurers by the department, there is potential for reduced reinsurance collateral for a Missouri captive using a Missouri front. The collateral amount could be negotiated based on the creditworthiness of the captive and owner, and could lead to significant cost savings. A foreign or alien captive using a front would be required to post 100 percent collateral, since it is a non-admitted insurer that is not licensed or regulated by the department.


44 US Captive . April 2011


Another unique opportunity in Missouri is access to the Iowa Federal Home Loan Bank (FHLB). Insurers are allowed to become members of the FHLB and can gain access to low-interest funds if they meet certain membership requirements for investment in the mortgage industry. There are collateral requirements and FHLB stock purchase requirements imposed by the FHLB, which may not be possible for all owners to meet. For those companies that qualify however, it can be very beneficial. Missouri’s position as the only captive domicile in the Iowa FHLB region is an added benefit available for captives licensed here.


“ There are now 11 captive managers approved in the state. Four managers are capable of providing management directly from their Missouri offices and others have captive consultants in the state as well.”


There are many benefits to licensing your captive in Missouri. The department is committed to providing a well-staffed, stable, responsive and flexible domicile that will benefit the state and your captive. 2010 was a great year, but the future is even brighter. With an excellent and continually growing service provider base and outstanding captive veterans leading the association, there is a wealth of captive expertise working to ensure Missouri is the go-to domicile in the Midwest. Missouri is a great place to do business and you’ll find our common- sense approach to regulation and our Midwestern work ethic to be very conducive to maximising the value of your captive. So whether you are considering forming a new captive or moving your existing captive closer to home, Missouri is ready to listen and work with you to get the job done right and on time.


John Rehagen is the captive program manager at the Missouri


Department of Insurance, Financial Institutions and Professional Registration. He can be contacted at: john.rehagen@insurance.mo.gov. Forms and additional information about the Missouri captive insurance programme are available at: www.insurance.mo.gov/captive.


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