While Ohio is a very small captive insurance company domicile, the state has several key captive attractions, Ohio's top captive regulator says.
For Ohio-based organizations, there can be significant cost savings in setting up captives in the state compared to other domiciles, says Tracy Snow, chief of captive insurance with the Ohio Department of Insurance in Columbus.
"You have cost savings of having meetings in the state as well as convenience," Mr. Snow said.
At the same time, state regulators try to quickly respond to questions from current and prospective captive sponsors.
"We try to be as responsive as possible," Mr. Snow added.
Captive sponsors applaud state captive regulators for their accessibility and knowledge of their business.
The Ohio captive regulators "are very approachable and business friendly. They understand our business and the business of our captive," said Andy Seger, general counsel in Cleveland with Imprise Insurance Co., an Ohio captive that underwrites warranty coverages.
While Ohio's captive count is small—at the end of 2019 just six captives were licensed in the state—captive premium volume was substantial. In 2019, those captives generated just over $904 million in premium volume, the highest since Ohio lawmakers passed legislation in 2014 authorizing the licensing of captives in the state.
Under Ohio's 2014 captive statute, single-parent, protected cell, and special purpose financial captives can be set up. However, group or association captives are not permitted.
The minimum capital and surplus requirement for single-parent captives is $250,000, while protected cell captives must maintain at least $500,000 in capital and surplus.
A $500 captive application fee is charged, while captives also pay a $500 annual renewal fee.
Direct written premiums are assessed a flat .35 percent tax, while a flat .15 percent tax is assessed on reinsurance premiums. The annual minimum tax is $7,500, while the maximum annual tax is $250,000. Annual premium taxes are due March 2.
Other captive requirements include holding an annual board of directors meeting in Ohio, while the captive's manager must reside in the state.