DCI seeks staff to review reinsurance captives as firms consider onshoring offshore reserves

The Department of Commerce and Insurance asked the House budget committee for staffing and expense authority to review applications from special-purpose life reinsurance captives and related reinsurance transactions that private entities say they may onshore to Missouri.

Tanya Henry said the insurance division expects an influx of applications from reinsurers that want Missouri to be the lead regulator for entities bringing offshore assets back to the United States. The requested package seeks personal‑service and expense authority and two additional FTEs to process and review those applications.

“Each SP LRC generates premium taxes and fees of up to $200,000 annually with 90% of those proceeds going to general revenue,” Henry said describing the potential revenue that could accompany onshored captives. Committee members asked whether Missouri would be “building it and they will come” and whether the requested funding is premature if the transactions have not yet materialized.

Nelson said the requested staffing would be funded by fee revenues already paid by the industry and that Missouri’s existing reinsurance expertise and regulator reputation have prompted firms to consider moving those assets onshore. Lawmakers pressed for follow-up: Representative Mayhew asked specifically whether fee and tax yields would at least match the department’s requested outlays, and Henry agreed to provide more-detailed revenue projections.

No final decision or appropriation was made during the hearing. Committee members signaled they want auditing details and explicit dollar estimates of net fiscal benefit before approving new recurring personnel authority.