FOR IMMEDIATE RELEASE
DEPARTMENT ROLLS OUT NEW CAPTIVE PROMOTION INITIATIVE
New Group Formed and Web site Launched to Fast-track Captive Formation; Businesses to Gain More Personal Customer Service and Flexible Insurance Options
Superintendent of Insurance Gregory V. Serio and Empire State Development Chairman Charles A. Gargano today announced the creation of a newly dedicated "captive group" and the launch of a new Web site designed to fast-track applications for captive formation. In order to be even more responsive to the needs of a rapidly changing insurance marketplace, New Yorks businesses will now have dedicated contacts in the Department of Insurance to answer all captive insurance questions and process captive applications within 30 days of the receipt of a fully completed application.
"The Department has always prided ourselves at being the facilitator of insurance coverage to our business community. Given the contraction of the commercial insurance market around the country, we are looking to be of greater help to even more of New Yorks businesses by offering them an important option through the use of captives as an alternative form of insurance," said Serio. "The new Web site will provide businesses with all the information they need to become licensed as a captive insurance company and the new group will be available to provide assistance and guidance through each step of the formation process."
Governor George E. Pataki signed New Yorks first captive legislation in August 1997, authorizing the formation of captive insurance companies in the State. Captives are created when a business or groups of businesses join to insure or reinsure their own risk. Captives and their managers operate free of most regulatory constraints, serving exclusively the companies or industries that form them. Allowing corporations to set up their self-insurance programs in New York creates jobs, while at the same time cutting costs for these corporations who in the past had to maintain separate staff and offices in another jurisdictions.
"New Yorks businesses can now reach out directly to dedicated staff to take advantage of the opportunity to utilize captive insurance companies to retain, fund, and better manage their risk," said Gargano. "This is yet another example of the Pataki administration working to improve the business climate of New York and assisting the State in maintaining its place as the world's preeminent financial center and our proud designation as the capital of the world."
The new captive group is made up of representatives from the Insurance Departments Capital Markets Bureau, Property Bureau, and Office of General Counsel. The group is chaired by Senior Deputy Superintendent of Insurance Peter Molinaro and the other members of the new group are:
The new captives Web site is www.NYCaptives.com. It includes all the forms necessary to form a captive in New York as well as additional information on formation, the benefits of creation, updated news, and links to the e-mail addresses of the captive group. The captives group can be reached by phone toll-free at 1-866-NYSCAPTives.