Kansas Department of Insurance

For years, Kansas has been the smallest captive domicile in the United States with just one licensed captive.

But that could be about to change, captive experts say.

"We are expecting some growth," Richard Ramos said earlier, when he was director of the Kansas Insurance Department's Financial Surveillance Division in Topeka.

A key reason for that optimism: the passage of legislation in early 2018 that updated the state's 20-year-old captive statute.

"We had a very outdated law," Clark Shultz said earlier, when he was assistant commissioner of the Kansas Department of Insurance. "We wanted companies in Kansas that want to set up captives to have the option of doing so in this state rather than having to go somewhere else," Mr. Shultz added.

The 2018 law made numerous changes to the captive statute. For example, the original law only allowed pure or single-parent captives. Under that legislative update, the law was revamped to also allow branch captives, special purpose captives, and association captives.

In addition, captives are now able to offer accident and health, life insurance, and annuities.

The 2018 law also allows captives to seek approval from the state insurance commissioner to insure risks of unaffiliated businesses—up to 5 percent of total written premiums.

Finally, the 2018 law bumps up the minimum capital and surplus requirements for single-parent captives to $250,000 from $100,000 and to $500,000 from $200,000 for association captives.

The changes in law, state regulators say, were driven by Kansas-based companies. "Kansas was approached by a few domestic companies that were interested in forming captives who also wanted to keep them in their home state," Mr. Ramos said.

Aside from a new updated captive statute, there are other factors that could lead Kansas companies to set up captives in the state, regulators say.

"Kansas is a place of opportunity that offers surprising advantages for companies, including a low cost of living, vibrant rural and urban communities, and a business-friendly climate, not to mention an experienced and responsive insurance department that is rated number two in the country with regards to customer service and responsiveness," Mr. Ramos said.

"We are a state that is business friendly and we will go out of our way to help companies," Mr. Shultz added.

Company Contacts

Captive Analyst/Admissions
785-296-7820

Mailing Address:
1300 SW Arrowhead Rd
Topeka, KA 66604
(785) 296-7820

Virtual Contact:

Captive Domicile Summary

Kansas adopted captive legislation in 1988. It is centrally located (the geographic center of the contiguous United States is near Lebanon), and easily accessible. Until recently, the state had not devoted as much effort to becoming a competitive captive domicile as other states in the middle of the country. As a result, it has not experienced the same growth as the more active states. However, Kansas updated its captive insurance legislation in 2018. Among other changes, the new law allows for the formation of branch and special purpose captives, allows captives to be maintained in dormancy, and includes a revised schedule for captive premium taxes.

Captive Domicile Statistics

Total Captive Count Kansas
Year Captives
2019 1
2018 1
2017 1
2016 2
2015