(Washington, DC) The DC Department of Insurance, Securities and Banking (DISB) is pleased announce that the District of Columbia’s success in attracting captive insurance companies landed it an “A+” grade from an independent consulting firm Johnson Lambert & Co., which conducted a study on the financial impact of captives on the District of Columbia.
According to the firm’s Second Annual DC Captives Report, the growth rate of DC captives has surpassed some of its biggest onshore competitors, making DC a leading captive domicile in the nation. Since the captive insurance law was passed by the DC Council five years ago, 55 captives have been established in DC with five more pending.
The most dramatic growth occurred in 2004, when the gross premiums written by the captives more then tripled those from 2003, with a total underwriting profit of $8.7 million to date and tax revenue paid to District of Columbia estimated at over $1 million by the end of 2005.
DC’s status as a nation’s capital and its high concentration of knowledge-based industries and professionals make it an ideal domicile for captives, which can tap into a wealth of business resources to set up captives. In addition, DC’s laws on captives insurance, which were revised in 2004 to make it easier for existing captives to transfer from any jurisdictions including foreign countries, has also helped several companies relocate to the city.
"We will continue the success of captive insurance by providing a stable regulatory scheme,” said Acting Commissioner Thomas Hampton. “Captive insurance is part of the District's economic viability. DC's tremendous resource in the number of financial service professionals in the area gives us the competitive edge to attract, operate, and manage the captives. Since the District of Columbia has a niche market in associations, we are going to target associations to grow our captive base."
For further information or questions, please contact Lily Qi, Public Information Officer, DC Department of Insurance, Securities and Banking, at (202) 442-7820 or lily.qi@dc.gov.
About captive insurance: Captive insurance is a form of self insurance that allows associations, organizations and groups to take financial control and manage risks by underwriting their own insurance rather than paying premiums to third-party insurers. The potential advantages of such self-insurance include lower costs, protection better tailored to the organization's needs, more control over risks, and tighter control over financial resources.
