“Hawaii has conducted captive
insurance seminars and has fostered
deep and meaningful relationships in
Japan for nearly 15 years.”
US Captive 2018 43
the state of Hawaii. This captive insurance branch with its dedicated
captive insurance examiners and professionals means the state
of Hawaii recognises the unique and dynamic features of captive
insurance that require a different approach to regulation than
traditional insurance companies.
A dedicated captive insurance branch also means captive insurance
companies and their owners can be assured that there are regulators
who understand their specific needs and desires and are willing
to work in partnership to achieve them. Also, captive owners have
consistently indicated that Hawaii is a preferred domicile because
of its longevity in the industry, noting that Hawaii’s enabling captive
legislation has been on the books since 1986 and its first captive was
licensed in 1987.
Slow and steady growth—with quality, not quantity, being its
mantra—has served the state well and continues to be one of the
reasons it is consistently on the list of top domiciles for captives.
Hawaii also distinguishes itself in how it views the size and vibrancy
of its captives industry. Where other captive domiciles might simply
quote the number of licences issued as their measure of success,
Hawaii focuses on more meaningful data.
In 2016, Hawaii’s captive insurers: 1) wrote more than $6.22 billion
in premiums; 2) had nearly $1.05 billion in assets invested with
Hawaii-based financial institutions; and 3) generated approximately
$23 million in economic benefits to Hawaii through various taxes and
fees, professional services, annual conferences and visitor industry
Hawaii was ranked third in the US based upon total premium
written, fourth in the US for largest captive domiciles and 11th in the
world based on total number of active captive licences.
Hawaii is also expanding its reach into a developing captive insurance
market in Japan. Through the Hawaii Captive Insurance Council
(HCIC), the state captive insurance trade organisation, Hawaii has
conducted captive insurance seminars and has fostered deep and
meaningful relationships in Japan for nearly 15 years.
In May, the HCIC sponsored its first Japanese captive owners’
summit in Tokyo. Hawaii is strategically located in the middle of the
Pacific and maintains deep cultural ties to Japan, making it a natural
location for Japanese companies to domicile their captives.
Paul B. Shimomoto is industry liaison and chair of the marketing
committee of the Hawaii Captive Insurance Council. He can be
contacted at: firstname.lastname@example.org