Iowa Captive Insurance
What is Captive Insurance?
Captive insurance is a form of self-insurance where a parent company or a group of individuals or businesses form their own insurance company. The primary purpose of a captive company is to insure the risks of its owners. A captive insurance company provides an alternative risk financing option for companies to take financial control of managing risk by underwriting their own insurance instead of paying premiums to third-party insurers.
Iowa Captive Insurance Links
Here are some of the advantages of Captive Insurance:
» Coverage tailored to your needs
» Increased insurance coverage and capacity
» Direct access to wholesale reinsurance markets
» Reduced operating costs
» Take advantage of investment income and improved cash flow
» Greater control over claims
» Stability in pricing
» Incentives for loss control
» Funding and underwriting flexibility
Contact Us
For more information about Captive Insurance in Iowa, please contact our Captive Director, Jeff Wilson at captive@iid.iowa.gov
Establisment of Captive Insurance Companies in Iowa
In 2023, the State of Iowa enacted legislation that allowed for captive insurance companies. The legislature also established the Captive Insurance Regulatory and Supervision (CIRS) fund, which is also administered by the Iowa Insurance Division.
Please reference Iowa Code Chapter 521J for more information about Iowa's new Captive Insurance Companies.