Insurance Commissioner Mike Causey is pleased to report that North Carolina's captive insurance company program once again exceeded expectations during the program's third full year of operation.
"North Carolina's captive insurance program continues to experience growth in the number of captive insurers forming and redomesticating to our state," said Causey. "North Carolina continues to prove to be a great place for captive insurers and I look forward to what is in store for 2017."
In October of 2013, after the passage of the North Carolina Captive Insurance Act, North Carolina became a jurisdiction for the formation and operation of captive insurers. North Carolina's captive insurance company program has grown significantly since that time. As a result, the captive insurance company industry has favorably impacted North Carolina's economy by creating jobs and generating premium tax revenue and business revenue.
As of Jan. 23, 2017, over 550 risk bearing captive insurance entities are under the regulation of NCDOI, including 190 captive insurers that are licensed or provisionally licensed and 363 cells or series that are approved or provisionally approved. The 190 standalone captive insurers are comprised of the following:
- Pure captive insurers: 150
- Protected cell captive insurers: 23
- Risk Retention Groups: 5
- Special Purpose captive insurers: 12
During 2016, the number of North Carolina licensed captive insurers more than doubled and the number of cells or series approved grew by more than 50%. This growth is attributed to both new captive insurer formations and captive insurer redomestications from other U.S. and off-shore captive insurer jurisdictions. The growth of small captive insurers continues to be strong, but North Carolina is also experiencing growth in larger captive insurers and risk retention groups.
NCDOI credits the success of North Carolina's captive insurance program to a number of factors, including the North Carolina Captive Insurance Act and the NCDOI's prudent yet pro-business approach to regulation; the support of and participation by captive insurer owners, captive managers and other captive insurance service providers; the contributions of the North Carolina Captive Insurance Association; and the support of the leadership of the State of North Carolina.
Captive insurance is a form of self-insurance through which a business may form its own insurance company to insure its risks. Potential benefits of captive insurance are reduced insurance costs, stabilized pricing, customization of policy terms and conditions to meet a business's needs, and the ability to obtain coverage that is not readily available or too costly in the commercial market.
Learn more about the North Carolina captive insurance company program at www.nccaptives.com.