By Michael P. Tremoglie
Ohio Lieutenant Governor and Director of the Department of Insurance Mary Taylor announced August 25 that Imprise Financial PCC Inc. (IFPCC) is licensed as the buckeye state’s first ‘protected cell’ captive insurance company.
Through these protected cells, IFPCC businesses will be permitted to insure some of their own commercial risks and control more of their risk-management programs. Captives have become popular. Rates charged are based upon the businesses specific loss history instead of a risk pool.
Gov. John Kasich, a Republican presidential candidate, signed into law a bill allowing businesses to form captive insurance companies domiciled in Ohio for their own commercial insurance needs. The Ohio Department of Insurance has regulatory authority over such captive insurance programs. The structure eliminates barriers to self-insurance for companies.
“This is a momentous occasion for Ohio and more specifically, for Ohio businesses,” said Taylor in a prepared statement. “Giving businesses the option to form a captive is another tool designed to help them thrive in Ohio.”
IFPCC’s first client will be NWAN, Inc., a third-party administrator of service contracts and warranties for automobiles, recreational vehicles, and motorcycles.
“Establishing a captive insurance program with Imprise Financial allows us to be more flexible in the services we offer our clients and makes our operation more efficient,” said David Neuenschwander, vice president and shareholder of NWAN, Inc. “We are already realizing the benefits of our captive insurance program and it has become an integral part of achieving our long-term goals.”
“We are very excited about the opportunity to help businesses add certainty to their risk-management programs and maximize their financial potential,” said Kelly Price, president of Imprise Financial, also in a prepared statement. “Staff at the Ohio Department of Insurance have been extremely professional and diligent throughout the licensing process and we are pleased to bring this innovative insurance solution to our clients.”
