Utah's effort to attract captive insurers has moved into high gear in recent weeks with the formation of a captive association and the insurance department's recruitment of a full-time director.
A total of 19 captives are currently domiciled in the state, which has had a captive authorization act on the books for the past three years.
Captive boosters hope the amendment last year to the Captive Insurers Act abolishing the premium tax in favor of a single $5,000 annual fee will help promote the site for companies or groups looking to set up their operations in the state.
Marsh USA broker Jon Soules helped spearhead the formation of the association. “What our members have told us is that having a group like this, much like the one Vermont has, will be critical for our efforts,” he said.
While the state looks for a permanent captive director, Steve Fry, the Utah Insurance Department's chief financial examiner, has been the point man for the issue.
He said currently all the captives in the state are single-parent entities. “But we have had some interest from risk retention group captives and association captives,” he said.
Mr. Fry said he hopes to promote the state's Western location as a site for businesses in that part of the country looking for convenience. State law requires that a board meeting must be held once a year in the state of domicile, and the captive must maintain a local address, which is often a professional captive manager.
At the March 30 initial Utah Captive Association meeting, representatives of current captives, related service providers and UID officials planned strategies for promoting the state as a captive site.
Utah Insurance Commissioner Kent Michie supported association efforts. When the group held its initial meeting he put out a statement exulting, “This is an historic day for the captive industry in Utah.”
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