JCB sets up reinsurance firm here
The company is among the largest to create a captive insurance business in Hawaii
JCB Co. Ltd.
, a major Japanese credit card firm, has opened a new Hawaii captive insurance company. The state issued a license on April 1 to PermCore Insurance Co. Ltd., a JCB subsidiary, which intends to provide reinsurance for several types of insurance the company offers its customers.
The Japan-based firm is one the largest companies to create a captive insurance business here. Nissan North America Inc., Intel Corp. and eBay Inc. also have Hawaii captive firms, which are set up as formalized self-insurance programs for large companies to cover their own risk.
JCB, which records an annual transaction volume of about $60.9 billion, has 58 million credit card customers worldwide. The card is accepted by 13.53 million merchants in 190 countries and territories.
JCB is contracting local specialists for accounting, banking, legal and investment services including Marsh Management Services (Hawaii) as captive insurance manager; Bank of Hawaii and First Hawaiian Bank for local banking and investment services; Goodsill Anderson Quinn & Stifel as local legal counsel; KMH LLP as independent auditor; Perr & Knight as independent actuary; and Marsh Broker Japan Inc. as risk management advisor.
"That's really the big benefit for Hawaii, the captive companies all utilize the same type of model, which uses local professionals for all their work," said Deputy Insurance Commissioner Craig Watanabe, head of the state Insurance Division's captive insurance branch.
The state has issued more than 200 captive insurance licenses -- of which 164 are currently active -- since its captive law took effect in 1986.
More than 100 full-time specialists were contracted by captive insurers in Hawaii last year, he said, adding that there are about 16 Japanese firms operating captives here.