Hawaii was established as a captive domicile in 1987 and has become one of the leading domiciles in the Pacific Rim. Offering the amenities of any major US city, Honolulu has excellent conference facilities, communications, transportation and professional services. Hawaii offers a solid infrastructure with a large number of captives managed and a well educated work force. Overhead in this location is lower than offshore domiciles and premium taxes and fees are set to cover costs only.
Captive Insurance in Hawaii
Hawaii is one of the oldest captive domiciles in the United States. Hawaii has issued over 220 captive licenses and has 165 active captives. Hawaii has an expert regulatory staff with over 20 years of experience in the captive insurance industry. Hawaii has a proven record of adapting to change and maintaining modern legislation. In the past two years they have added legislation to allow formation as a limited liability company, as well as providing for more modern investments. Hawaii laws allow for the writing of all lines of casualty insurance, liability, marine and transportation, marine protection and indemnity, wet marine and transportation, property, surety, title, credit life and credit disability, or other lines that may be allowed by the Insurance Commissioner. Coverages can be provided by the captive on a direct or reinsured basis, or combination thereof. Hawaii is also one of the few states that allows captives to be formed as non-profits.
Hawaii captives are designated and licensed as one of the following classes:
- Class 1: Limited to single parent (or pure) captives that only reinsures affiliated risk from an insurer approved by the Insurance Commissioner.
- Class 2: Limited to single parent (or pure) captives that insures risks of its owners and/or affiliates on a direct basis, and may also assume reinsurance like a Class 1 captive.
- Class 3: Limited to association captive insurance companies or risk retention captive insurance companies.
- Class 4: Limited to a sponsored captive facility where protected cells may be established to segregate the risks of participants.
- Class 5: A captive which is not a Class 1, Class 2, Class 3 or Class 4 company and acts only as a reinsurer or excess insurer or both. And insures only those risks and lines of insurance approved by the Commissioner.
USA Risk Group services Hawaii clients through our Scottsdale, Arizona location.
Why Choose Hawaii for Your Captive
- A flexible and business friendly regulatory environment supported by a strong in-state service provider network and knowledgeable and experienced regulators.
- Lower overhead than many offshore domiciles.
- Lower premium tax structure and a premium tax cap at $200,000 and no premium tax on reinsurance premiums.
- A year round destination for leisure activities, which also provides superior accommodations for business meetings.
USA Risk Group (West), Inc
Our Scottsdale, Arizona office is authorized to manage captives in Hawaii and offers:
- An executive staff with experience in multiple domiciles, including Hawaii, who have formed numerous captives and serve or have served on industry associations
- Strong relationships with Hawaii regulators and service providers (current deputy commissioner is a former employee of USA Risk Group)
- Strict internal controls over all our processes including disaster recovery and state of the art information technology
USA Risk Group (West), Inc.
15615 N 71st Street, Suite 103
Scottsdale, AZ 85254
Tel: 800/872-7475 x2202