Texas Licensed 14 New Captive Insurance Companies in 2020

Texas, one of the youngest and fastest-growing captive insurance company domiciles in the United States, continues to see its captive count rise.

In 2020, Texas licensed 14 captives, bringing its total captive insurance company count to 57, a spokesman for the Texas Department of Insurance (TDI) said.

As recently as 2014, 1 year after Texas lawmakers approved legislation allowing the formation of captive insurance companies, the state had just 13 captives.

Since the passage of the 2013 legislation allowing captive formations, state lawmakers have passed measures to boost the appeal of Texas as a captive insurance company domicile.

For example, in 2015, Texas lawmakers approved a bill that allows captive insurance companies, if the TDI approves, to pool risks with other captives.

A measure approved 2 years later allows captives to insure employee benefit risks, except for life insurance, that are covered under the federal Employee Retirement Income Security Act.