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News Release

New Jersey Department of
Banking and Insurance

Commissioner Ken Kobylowski

For Immediate Release:
October 3, 2014

For Further Information:
Ed Rogan or Marshall McKnight (609) 292-5064

Commissioner Kobylowski Updates New Jersey Business Leaders on Economic Growth and Opportunity at Captive Insurance Summit

NEW BRUNSWICK – New Jersey Department of Banking and Insurance Commissioner Ken Kobylowski told a group of more than 90 business leaders on Tuesday at the Department’s Captive Insurance Summit that the Christie Administration’s economic development policies have created a growing captives market. 

“Thanks to the leadership of Governor Chris Christie, we have a new and growing captive market in New Jersey,” said Commissioner Kobylowski.

From left, NJDOBI Commissioner Ken Kobylowski, Captive Summit Keynote Speaker William P. White, NJDOBI Chief of Office of Captive Insurance John Talley and Acting Insurance Division Director Peter Hartt attended the 2014 New Jersey Captive Insurance Summit on September 30 at the Hyatt Regency in New Brunswick.

 

The Department hosted the Summit, which was held at the Hyatt Regency in New Brunswick, to provide industry and regulatory perspectives on emerging industry issues. The Summit also helped companies planning to form captives to familiarize themselves with the State’s regulations and application process and to bring together experts in the captives industry to share their experience and issues.

Captive insurance companies are insurance companies established with the specific objective of financing risks emanating from their parent group or groups.

In February 2011, Governor Christie signed the Captive Insurance Law, P.L.2011, c.25 which allows for the formation of captive insurance companies in New Jersey.


Prior to the enactment of the law, New Jersey companies that wished to form captives had to do so in other states and countries. Today, New Jersey companies can use the law to insure their New Jersey risk right here in New Jersey.

Since the law became effective, the Department has approved the formation or redomestication of 17 captive insurance companies, and there are currently several other potential captive insurance company formations in the various stages of approval in New Jersey.

The summit consisted of two panels. The first, “Life Insurer-Owned Captives and Internal Revenue Service Issues,” highlighted recent developments at the National Association of Insurance Commissioners (NAIC) involving the proposed regulatory treatment of the life insurance industry’s use of captive insurers. Additionally, panel attendees discussed new Internal Revenue Service issues that captive insurers face, including some key court decisions and increased audits. The second panel, “Emerging Captive Trends and Issues” focused on factors impacting captive insurers today such as: employee benefits, international events, the Nonadmitted and Reinsurance Reform Act (NRRA), state self-procurement tax, and cyber risk coverage.

William P. White, Managing Principal, Acuity Strategic Consulting LLC, delivered the keynote address on the changing regulatory landscape for captive insurers. White is a former Commissioner of Insurance Securities and Banking for the District of Columbia.

Commissioner Kobylowski told the audience: “We’ve got a great story to tell in New Jersey. Thanks to the Christie Administration, the Garden State is a great place for business.”

For more information of New Jersey’s captive insurance law, and applications process, go to: www.dobi.nj.gov/captive/.

To view Bulletin 11-08, which provides information on how to establish a captive insurance company in New Jersey, go to: www.state.nj.us/dobi/bulletins/blt11_08.pdf.
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