The Nevada Division of Insurance licensed 23 new captives last year, bringing its total to 296.
Of the new captives, 22 were protected cells and one risk retention group (RRG).
The division of insurance revealed that there was 25 captive closure during last year. The closures included 16 protected cells, eight pure captives and one RRG.
Although the state saw an increase in the number of captives licensed from the previous year, the total number of captives has decreased year-on-year since 2018.
Nevada, which established its captive market in 1999, is now home to a total of 136 pure captives, two agencies, seven associations, one branch, 13 RRGs, and seven sponsored.
In 2019, the 80th Nevada Legislative Session added a dormant captive insurer status to the law. Captives can now retain their insurance license during periods of inactivity and/or for the re-evaluation of a business plan or purpose.
Also, as of January 2019, the division reduced examination costs by 33 percent. Non-pure captives are subject to examination by the insurance commissioner every three years though this may be extended to five years if comprehensive annual audits are conducted.
Read more about Nevada’s captive insurance market in the Captive Insurance Times 2020 Domicile Guidebook 2020.
