COLUMBUS — Lieutenant Governor and Insurance Director Mary Taylor has named Tracy Snow Chief of the Ohio Department of Insurance’s new Office of Captive Insurance.
Governor John Kasich recently signed into law legislation allowing Ohio businesses to form captive insurance companies in the state to provide for their own commercial insurance needs, such as for auto liability and medical malpractice. HB 117 also gives the Department of Insurance regulatory authority over captives.
“Tracy brings great private sector and regulatory oversight experience to this new office in addition to valuable leadership skills,” Taylor said. “His more than 12 years of insurance regulatory experience includes overseeing or directly performing risk-focused analysis of nearly 240 insurance companies based in Ohio.”
Taylor said Ohio-based businesses interested in forming a captive in Ohio or relocating it from another state will find detailed information on the Department's website and can call the Office of Captive Insurance at 614-728-1753 with questions and for additional information.
Ohio has joined more than 30 states that allow the formation of captives. They have become a popular risk-management tool for businesses seeking greater control over managing their commercial insurance needs.
HB 117 also sets forth certain capital and financial reserve, organizational, general application and fee requirements and gives the Department authority to monitor the relationship/transaction between a parent business and its Ohio formed captive(s) instead of relying exclusively on another state’s regulator. These measures will provide the Department with the regulatory tools necessary to monitor and regulate captives operating in Ohio.
A captive is different from a traditional commercial insurance company because it only insures the business of its parent and/or affiliates. Therefore, captives are regulated differently than insurance companies that serve the public. Like traditional insurance companies, however, captives are regulated by the state in which its headquarters are located.