Captive insurance is a form of regulated self-insurance in which a business or group of businesses establishes, owns, and controls its own licensed insurance company. Rather than relying solely on traditional commercial insurers, organizations use a captive to finance risk through an entity designed around their unique operational objectives. Captives are licensed and regulated by their chosen domicile, complying with all statutory, financial, and reporting standards.
Organizations establish captive insurance companies to gain greater control over how their risks are financed and managed. A captive allows businesses to tailor insurance coverage to their specific exposures, improve the predictability of long-term insurance costs, and access reinsurance markets more efficiently. Captives also encourage stronger risk management by aligning financial incentives with loss prevention while allowing underwriting profits and investment income to remain within the org
For more information about Captive Insurance in Iowa, please contact our Captive Director, Jeff Wilson at [email protected]
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.
