Overview
Hawaii established its captive legislation in 1987 and has become the leading captive domicile in the Pacific Rim. It is the third largest US domestic domicile behind Vermont and Utah. At the end of 2010, Hawaii had 168 active captives.
Minimum Capital and Surplus
| Single parent captive – reinsurance only | $100,000 |
| Single parent captive – other | $250,000 |
| Group captive including Risk Retention Group | $500,000 |
| Sponsored or leased capital captive | $1,000,000 |
| Reinsurance or excess captive | case by case |
Key Features of Legislation
Hawaii has a separate class of captive for single parent captives which are only writing in a reinsurance capacity. The lower minimum capitalization may be attractive to those concerned about additional capital requirements beyond the collateral required by a fronting company.
Specialty
Hawaii is a mature captive domicile with a stable regulatory environment. Its location has made it attractive to captive owners from the western United States. Approximatley 75% of Hawaii’s active captives have owners from the western US. The domicile has also attracted several captives with owners from the Pacific Rim, especially Japan.
SRS Presence
SRS was approved as a captive manager in Hawaii in 2007. Craig Watanabe, former Deputy Commissioner and Captive Insurance Administrator for Hawaii, is responsible for the oversight and development of SRS clients in Hawaii.