Nevada Captive Insurance Growth in 2025: Key Developments

Nevada Captive Insurance Highlights in 2025: Growth and Regulatory Developments

February 12, 2026

Reporter: Elliot Hayes

The Nevada Division of Insurance wrapped up 2025 by licensing 282 captive insurance entities, showcasing significant growth and regulatory developments. These entities include pure, association, agency, and branch captives, risk retention groups, sponsored captives, and protected cells. The rise in AI-driven prior authorization delays did not deter this expansion.

Dominance of Protected Cell Structures

Pure captives comprised 20% of the total captive structures. However, protected cells led the landscape, representing approximately 70% of captives, underscoring their role in delivering shared insurance solutions across multiple unaffiliated entities. The regulatory compliance requirements for these structures have adapted to market demands.

Industry Trends and Regulatory Compliance

Michael D. Reynolds, a management analyst at the Nevada Division of Insurance, revealed that new cell structure applications are on par with other licenses. Sponsored captives pursue specialized programs, ensuring resilience against market and regulatory shifts. Popular industries establishing captives in Nevada encompass construction, manufacturing, gaming, mining, and agriculture.

Regulatory and Tax Incentives

Nevada, a competitive domicile since 2009, attracts captives through affordable fees and regulatory support. Application fees are $1,050, with annual renewals at $550, including a $5,000 premium tax filing credit. Capital requirements range from $200,000 for pure captives to $800,000 for rental captives, with series corporation structures offering unique advantages.

Streamlined Processes and Industry Engagement

The state employs efficient processes with March 1 deadlines for tax returns and renewals, June 30 for annual reports, and actuarial opinions. Recent legislative advancements have expanded insurance lines captives can write, excluding direct automobile liability and workers' compensation, but allowing coverage through reinsurance arrangements.

Reynolds credited Nevada's captive insurance industry's growth to favorable conditions and regulatory cooperation. Continuous efforts to enhance the regulatory environment include revised standards and a specialized analyst, improving review times and industry engagement in 2023.