HELENA. MONT. — Montana gained nearly 40 captive insurance companies in 2015, further raising the state’s profile as a leading player in the industry while increasing tax revenues and economic activity for the state.
Captive insurance companies are a form of self-insurance used by numerous entities, from major multi-nationals to nonprofits, to address various insurance needs from worker’s compensation to vehicle insurance. In Montana, captives insure rural hospitals, nursing homes, commercial trucking firms and more.
Captive insurers have been active in Montana since 2001, with insurers collecting more than $1 billion in premiums and contributing more than $6.7 million in state premium taxes. Since legislative action in 2009, the number of captive insurers based in Montana has increased more than five-fold. They’ve also contributed to a growing infrastructure of accountants, captive insurance managers and other professionals.
“We’ve seen economic benefits from the captive insurance industry in Montana, including growth in revenues as well as the development of clean, high-paying professional jobs,” said Monica Lindeen, Montana Commissioner of Securities and Insurance. “We’re now poised for more growth in this industry, as Montana is recognized more and more as a great place for these insurers to base their business.”
Tal Redpath, a key member of the captive insurance regulatory team at CSI, has received national recognition for his efforts to expand the captive insurance market in Montana. In late 2015, Captive Review magazine named Redpath in the first-ever list of 20 Enterprise Risk Captive Pioneers. He was one of just four public-sector captive insurance experts nationwide to receive the honor and has been a leader in improving the industry through the development of best practices.
“Tal has done amazing work for our office for more than 18 years,” Lindeen said. “The fact that the industry recognizes the work of an individual that regulates them is a testament to his work ethic and his understanding of how Montana can excel in a competitive and dynamic industry.”
The office of the Montana Commissioner of Insurance and Securities, along with the Montana Captive Insurance Association, have spearheaded legislative efforts to expand the industry in Montana. With near-unanimous bipartisan support, the 2015 Montana Legislature passed House Bill 536, which authorizes public-sector entities to set up captive insurance companies, and House Bill 537, which clarifies that captive insurers can be established as limited-liability companies (LLCs).
The Montana Captive Insurance Association is hosting its annual conference in Whitefish July 19-21, bringing numerous participants in the industry to Montana.
For more information about captive insurance in Montana, check out http://csimt.gov/insurance/captives/.