Montana Captive Insurance Association Reports on Growth and Regulatory Changes
June 28, 2024
The Montana Captive Insurance Association (MCIA) released its 2024 Montana Captive Domicile Report, highlighting continued growth in the state's captive insurance sector; Montana has licensed over 725 captive insurance companies since 2001. The domicile added 50 new captives with 54 surrenders in 2023 and licensed 19 in the early months of 2024. Included in Montana's captive license count are series business units (SBUs), stand-alone/pure captives, incorporated protected cell captives, protected cell structures/cores, and series limited liability company structures/cores.
The report provides the following breakout of the number of licensed Montana captives by type for 2023.
| Captive Type | Number of Captives Licensed |
|---|---|
| Association | 1 |
| Protected Cell—Core | 7 |
| Protected Cell—Incorporated | 10 |
| Protected Cell—Unincorporated | 3 |
| Pure | 63 |
| Special Purpose | 6 |
| Special Purpose—Core | 10 |
| Special Purpose—SBU | 144 |
| Reinsurance | 12 |
| Risk Retention Group | 7 |
| Total 2023 | 263 |
Captive insurance companies licensed in Montana are currently being used for over 30 different types of corporate risks. Examples include agency professional liability, trucking liability, employment practices liability, environmental liability, and directors and officers liability, to name a few mentioned in the report.
In 2023, Montana captives generated $263,183,573 in direct premiums written and contributed $1,519,702 in collected premium taxes, according to the report.
The report also notes the passage of SB 260, signed by Governor Greg Gianforte in 2023. This legislation aligns Montana with other states by protecting captive insurers from third-party bad faith claims under the Unfair Trade Practices Act, aligning the state with model legislation and a significant majority of other states.
June 28, 2024
