The Kansas House Committee on Insurance convened on February 14, 2025, to discuss the potential benefits of captive insurance, with a focus on how it could impact local businesses and the state's economy. A key highlight of the meeting was the discussion around the establishment of captive insurance companies, which allow businesses to self-insure against risks that may not be adequately covered by traditional insurance policies.

Representative Tarwater raised concerns from constituents about rising insurance premiums and explored whether churches could benefit from captive insurance arrangements. Experts indicated that churches could indeed form captives, especially if they band together, which could help mitigate costs.

Kevin Doherty, a prominent figure in the captive insurance sector, provided insights into the advantages of bringing captive insurance back to Kansas. He emphasized that captives can offer tailored coverage for unique risks, often at a lower cost than traditional insurance. Doherty noted that states like Tennessee have successfully attracted captive insurance businesses, generating significant tax revenue and creating high-paying jobs in the process.

The committee also discussed the regulatory framework necessary for establishing captives in Kansas. Doherty explained that while there are no specific licensing requirements, a certificate of authority from the insurance commissioner is essential. This regulatory clarity could encourage businesses currently using offshore captives to relocate to Kansas, thereby boosting the local economy.

The meeting concluded with a consensus on the potential economic benefits of captive insurance, with members expressing optimism about Kansas becoming a competitive domicile for these entities. The committee plans to further explore legislative measures to facilitate the growth of captive insurance in the state, aiming to enhance local job creation and tax revenue.