FOR IMMEDIATE RELEASE
DINALLO ANNOUNCES DOW JONES FORMS CAPTIVE INSURER IN NEW YORK
Acting Insurance Superintendent Eric R. Dinallo today announced that the New York State Insurance Department has licensed Bergstresser Insurance, Inc., as a captive insurance company. Bergstresser will insure the risks of Dow Jones & Company, a business and financial publishing company with properties including the Wall Street Journal and Barrons.
"The Insurance Department welcomes Bergstresser and congratulates Dow Jones on taking advantage of all that New York offers to captive insurance companies," Acting Superintendent Dinallo said. "New York, with its investment management talent and vibrant financial services industry, is the natural home for captives, and proposed new legislation would open up this opportunity to an even broader range of companies."
Captives are unique, freestanding entities that are created when a business or group of businesses form a corporation to insure or reinsure their own risk. These self-insurance vehicles frequently enable New York businesses to pay lower premiums, tailor coverage to specific needs, access the reinsurance market to transfer risk and gain greater control over claims.
Bergstresser Insurance, Inc., is the 39th captive insurance company licensed to operate in New York State. It will insure property, TRIEA (Terrorism Risk Insurance Extension Act of 2005) losses and other lines of business on behalf of Dow Jones, its subsidiaries and affiliates.
Captives were not permitted in New York prior to the 1997 signing of the Captive Law. Most had been headquartered in a small number of states or off-shore jurisdictions like Bermuda. Shortly after the law went into effect, the Insurance Department launched its Captive Group in order to encourage companies to establish alternate insurance programs such as captives in New York State.
Jody Wald, Captives Coordinator of the Departments dedicated Captive Group, led the departments handling of the licensing process.
The information necessary to become licensed as a captive is available by calling the New York State Insurance Departments Captive Group toll-free at 1-866-NYS-CAPT (1-866-697-2278), or by visiting the groups website, www.nycaptives.com. Companies can download the necessary application forms as well as a copy of the law from the site. The approval process for licensing a captive insurer often takes less than 30 days.