For 25 years, Arizona has been the domicile of choice for hundreds of companies, public sector entities, and other organizations for their captive insurers. With over 325 captive licenses issued, Arizona is #11 globally and #7 in the United States by number of captive insurers. Arizona's straightforward and common-sense captive insurance laws, along with experienced regulators who understand the business of insurance, combine for a pro-business, practical approach to captives. And, importantly, operating costs for Arizona captives are low—no premium taxes or fixed fees for licensing and the annual license renewal. If you are looking to implement a successful risk management tool, then look to Arizona.
Arizona Department of Insurance and Financial Institutions - Captive Program
Company Contacts
Chief Captive Analyst
Office: (602) 364–0267
Mobile: (480) 749–3483
Mailing Address:
100 N. 15th Ave., Ste. 261
Phoenix, AZ 85007
(602) 364–2008
Virtual Contact:
Website:
Arizona Department of Insurance and Financial Institutions - Captive Program
Captive Domicile Summary
Arizona has had legislation for limited purpose reinsurance companies, known as "Life and Disability Reinsurers" (LDRs), since the early 1970s. Historically, LDRs enjoyed many of the benefits realized by captive insurance companies. The law applicable to LDRs was modified in 1999 making unaffiliated credit life and disability reinsurers similar to captive insurers. There are still a number of life, credit life, and credit disability companies licensed under the old special statutes.
The Arizona Captive Insurance Act, went into effect in July 2002. It was amended in 2014 to make the law consistent with National Association of Insurance Commissioners regulations.
The Department of Insurance and Financial Institutions has a Captive Insurance Division and touts an experienced regulatory staff. With the exception of the years during the economic downturn in the late 2000s, the captive market in the state has enjoyed moderate, steady growth. The combination of efficient regulation, a pro-business environment, and the proximity to captive owners in a number of western states has given Arizona a solid captive insurance presence.
Captive Domicile Statistics
| Total Captive Count Arizona* | |
|---|---|
| Year | Captives |
| 2024 | 201 |
| 2023 | 176 |
| 2022 | 162 |
| 2021 | 149 |
| 2020 | 131 |
| *Includes cell captives | |
| Captives' Gross Written Premiums Arizona | |
|---|---|
| Year | Gross Premium |
| 2024 | $13.61 billion |
| 2023 | $11.96 billion |
| 2022 | $10.5 billion |
| 2021 | $10.1 billion |
| 2020 | $9.3 billion |
