RELEASE: GOVERNOR IGE HIGHLIGHTS THIRTY YEARS OF SUCCESSFUL CAPTIVE INSURANCE IN HAWAIIPosted on Jun 27, 2016 in Main, News Releases
DAVID Y. IGE
FOR IMMEDIATE RELEASE
June 27, 2016
GOVERNOR IGE HIGHLIGHTS THIRTY YEARS OF SUCCESSFUL CAPTIVE INSURANCE IN HAWAII
HONOLULU — Hawaii Governor David Y. Ige today commemorated the thirtieth (30th) year anniversary of the establishment of Hawaii’s captive insurance industry. Since enabling legislation was enacted into law on May 29, 1986, Hawaii has positioned itself as a leader in the captive insurance marketplace at the international level.
Hawaii is ranked fifth in the U.S. for largest captive domiciles and 12th in the world based on total number of active captive licenses. In fiscal year 2015, Hawaii’s captive insurers wrote more than $4.34 billion in premium volume, invested over $1.26 billion in assets through Hawaii banks and financial institutions and generated more than $21.8 million in economic benefits to Hawaii through various taxes and fees, professional services, annual conferences and visitor industry businesses. Over the past five years, there has been continued growth with an increase in the total combined asset base from $9.14 billion to $18.83 billion.
“It is an honor for me to celebrate Hawaii Captives’ 30th anniversary. As one of the premier, long-standing U.S. captive domiciles, the Hawaii domicile has demonstrated the continuing success of the state’s commitment to fostering innovation while maintaining a reliable, consistent and business friendly environment,” said Governor Ige. “Over these 30 years, the Hawaii captive industry has steadily grown to become an important segment of the economic diversification of this state. It has generated over $21 million in annual spending, created locally specialized industry jobs, and complemented our world class hospitality and meeting resources.”
Captive insurance is a regulated form of self-insurance formed by companies or groups of companies as a form of alternative insurance to better manage their own risk. Captives are typically used for corporate lines of insurance such as property, general liability, products liability, or professional liability.
“The captive insurance market is becoming increasingly competitive with additional domiciles vying for the attention of companies. With Hawaii Captive Branch’s team of experts, dedication and efficiency, we are able to continually attract captive owners from the U.S and abroad that want to leverage our expertise to help them achieve their risk management objectives,” added Hawaii Insurance Commissioner Gordon I. Ito. “We look forward to celebrating this achievement of Hawaii Captives: 30 years of Experience and Aloha with our captive owners and business partners whom have been crucial in this success for Hawaii and continuing this important partnership for many more years to come.”
“We have had captive operations in Hawaii for over 25 years. The key for us in choosing and remaining in Hawaii as our captive domicile has been the experience, expertise and flexibility of the regulatory environment and service provider infrastructure” said Mike Owens of Marriott International Risk Management. “As a global hotel management company, Marriott’s risks are frequently changing and our captive plays an important role in our overall risk management strategy.”
“When selecting a domicile for our captive, we looked for an experienced domicile that understood our business and wanted to work with us to achieve our risk management objectives” said Capri Haga, Senior Vice President of Public Storage. “Hawaii has always helped us in enhancing the value of our captive.”
Since 1986, 317 captive insurers have been licensed, with 205 active today.
Development and oversight of the captive insurance industry rests with the Hawaii Insurance Commissioner, Insurance Division, Department of Commerce and Consumer Affairs, State of Hawaii. For more information about Hawaii’s Captive Insurance, please visit www.captiveinsurance.hawaii.gov or call (808) 586-0981.
About the Captive Insurance Branch:
The Captive Insurance Branch was established to provide dedicated resources to assist the Insurance Commissioner with monitoring, regulation and development of captive insurance companies in Hawaii.
The Hawaii Insurance Division oversees the Hawaii insurance industry; issues licenses; examines the fiscal condition of Hawaii-based companies; reviews rate and policy filings; and investigates insurance related complaints.
Photos from the ceremony may be downloaded from: https://flic.kr/s/aHskChpusY
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Department of Commerce and Consumer Affairs