Missouri Department of Insurance
John Talley, installed as captive programme manager at the Missouri Department of Insurance in December 2015 after holding a similar role in New Jersey, explains how keeping on top of the complexity of captives is key to future growth in the domicile
Why did you make the move from New Jersey to Missouri?
Missouri is a great insurance market with a well-respected team of career regulators. Additionally, Missouri is my boyhood home, and I also have family in Kansas City and Jefferson City, so it was a natural move for me. I have experience in several states and those were wonderful experiences, but the opportunity to work in a solid insurance domicile such as Missouri and be close to my family was too to good for me to pass up.
What do you aim to achieve as captive programme manager in the state of Missouri?
I was very impressed with the quality of Missouri’s captive programme. Missouri insurance regulators are among the best in the country. As the new captive programme manager, I will continue to promote quality over quantity and will actively promote Missouri as a domicile. I will increase our efforts to train and educate both the business and captive communities and promote growth of the domicile. Specifically, I will help the captive industry understand the regulatory process and their role in it.
Do you expect to oversee growth in Missouri’s captive industry?
The challenges facing Missouri are no different than the challenges facing any captive domicile. The captive concept was originally created to provide additional risk management options in the market. In the past, the growth of the captive insurance market was directly tied to affordability and availability issues in the traditional insurance market. Today, captive formation and growth continues to rise during both hard and soft markets. It is my plan to continue this growth process by building upon Missouri’s stable history of growth and extraordinary potential.
Captives have become a popular risk-management tool for organisations seeking to obtain greater control over managing their insurance needs. Corporations have come to understand the strategic value of captive insurance companies. As the popularity of captives has grown so have the complexities of the transactions. It remains incumbent upon Missouri to continue to evolve our captive programme to keep pace with the ever-changing risks.
With 48 quality captives licensed in the state, the market is optimal for Missouri companies and non-Missouri companies to form their captives here. Given the regulatory knowledge and experience of Missouri’s captive staff and the state’s commitment to a strong and viable captive programme, I am confident in our ability to grow and prosper as a domicile.
What makes Missouri an attractive jurisdiction?
The Missouri captive programme is designed on a pro-business platform that includes a streamlined application review process. We have an experienced and knowledgeable regulatory team. Applications are processed efficiently, and our experienced in-house examiners conduct exams, which minimises cost and time.
The department regulates more than 2,000 insurance companies, ranging from domestic companies with members of some of the world’s largest groups to small farm mutual companies that operate out of an officer’s home. The programme has evolved in a positive way and experienced solid growth since the enactment of robust captive legislation in 2009. Missouri captives wrote more than $5 billion in premium for 2014.
What targets do you have for 2016?
The Missouri Department of Insurance has licensed quality captives with sound business plans and good corporate governance. I am committed to maintaining high standards in the captive community nationwide. I think the reputation of Missouri and our service providers is exemplary and it keeps us on the competitive edge on a global stage. Choosing the right captive insurance domicile is important for the ongoing success of a captive insurance company. Missouri’s efficient and effective programme will continue to make it a domicile of choice.
Are there any upcoming regulatory updates?
At present, I do not have any personal knowledge of potential legislative priorities in Missouri for captives on the horizon, but 2016 is a new year.
