Arizona has enjoyed exponential growth as a captive insurance domicile since its inception of its captive program in 2022.
During that time, it has grown to a total of 203 captives in 2026.
According to the latest available figures, gross written premiums have increased to $13.61 billion in 2024.
Captive managers attribute that growth to a range of factors. A key factor is that, unlike many other domiciles, Arizona doesn’t impose a tax on its captives' premium volume.
“That is a very attractive feature,” said Kimberly Wack, a director with Aon PLC in Phoenix. “That is where Arizona stands out.”
Not adding a premium tax is a “big plus for Arizona”, said Diana L. Dunkin-Vasquez, chief captive analyst with the Arizona Department of Insurance and Financial Institutions in Phoenix.
Also, contrary to many other domiciles, Arizona’s captive regulators have funds, authorized under legislation passed in 2017, to cover any expenses they may incur in promoting the state’s captive insurance industry.
“This is an indication of how supportive state legislators are of the state's captive statute,” said Stephen Briggs, a legislative and public affairs officer with the Arizona Department of Insurance and Financial Institutions in Phoenix.
Other factors driving captive growth include the state’s high quality and accessibility of captive regulators.
“They are very flexible and easy to work with,” said Aon’s Ms. Wack.
The regulators also take the time to meet with captive sponsors and managers.
“They are very available and interactive” with the Arizona Captive Insurance Association (ACIA), noted Victoria Fimea, a member of the ACIA's board of directors, and previously a senior vice president, legal counsel and head of the regulatory department — North America for Artex Risk Solutions in Mesa, Arizona. She added that a state captive regulator always attends the Association's breakfast meetings.
As a result of these key benefits of doing business in Arizona, some of the biggest and best known US corporations in industries as diverse as healthcare, manufacturing, banking and insurance, have established captives in the state.
"Arizona's popularity as a captive jurisdiction is due in no small measure to two main reasons," said J. Michael Low, former president of the ACIA and counsel with Kutak Rock LLP in Scottsdale, Arizona, who sits on 30 boards of Arizona captives, including those owned by companies actively operating well-known businesses in technology, finance, construction, building supplies, energy, healthcare, education, agriculture, transportation, consumer products, and other industries. "The first is that the Arizona Captive Insurance Division, under the steady leadership of Victoria Fimea, is a business-friendly environment devoted to the timely and efficient captive licensing services.
"The second is that there is no premium tax, unlike most other captive jurisdictions. There is only an annual license fee of $5,500. And it doesn't hurt that Arizona itself is a popular tourist destination. So having your annual board meeting here is not a burden but an opportunity to also visit Phoenix, Scottsdale, Sedona, and the Grand Canyon. A nice combination of business and pleasure."
The state periodically revises its captive statute to reflect changing market conditions, and one of the most significant recent updates was the House Bill (HB) 2193 in 2025. The legislation introduced a series of reforms, ranging from dormancy provisions to capital requirements and funding mechanisms for the Captive Division.
HB 2193 also reduced the minimum statutory capital for protected cell captive insurers to $250,000.
George Belokas, president, GPW and Associates, said, "Arizona has also demonstrated its commitment to maintaining a modern and competitive captive insurance framework through the passage of HB 2193 in 2025, introducing dormant captive status, reducing capital requirements for protected cell structures, modernizing governance provisions for LLC captives, and streamlining license renewal timelines."
He added, "Arizona's approachable and experienced captive insurance regulatory team, led by Victoria Fimea, fosters open communication with both current and prospective captive owners, providing a collaborative regulatory environment.
"Arizona benefits from a strong and growing network of local captive insurance professionals who help owners effectively navigate the complexities of forming and operating a captive insurance company."
Tasha Cycholl, partner, Husch Blackwell, said, "Arizona offers significant advantages as a domicile for captive insurance companies, combining a business-friendly regulatory environment with sophisticated oversight. The Arizona Department of Insurance and Financial Institutions (DIFI) provides a streamlined formation process, typically allowing captives to be licensed within 30 days of application filing. At the same time, DIFI maintains robust regulatory standards that ensure financial stability and credibility. Chief captive analyst Victoria Fimea ensures that Arizona will continue to be a go-to jurisdiction for captive formation for years to come, as she has demonstrated tremendous leadership in the development of new opportunities and continues to focus on modernizing the captive division. The lack of premium taxes imposed on captives further enhances the appeal of forming captives here, as does the opportunity to hold annual board meetings in a place where you can also catch a spring training game or hike Camelback Mountain. All in all, Arizona is one of the strongest captive domiciles in the US, and for good reason."
Such is its appeal as a domicile, Arizona continues to attracted captives which redomicile from other jurisdictions, with more expected to follow suit.
"We have seen an uptick of interest" from captives in other domiciles, said Vincent Gosz, Arizona's former chief captive analyst. He added: "The future is very bright. We have grown steadily and predictably, and we think that will likely continue in the future."
Arizona capital and surplus requirements vary by captive type. For example, the minimum capital and surplus requirement for single-parent and protected cell captives is $250,000 and $500,000 for risk retention groups.
Captives also have to hold at least one annual meeting in Arizona and have at least one Arizona resident director.
