North Carolina Insurance Commissioner Mike Causey today congratulated the NCDOI’s Captive Insurance Division and the state’s captive industry on receiving the prestigious “Domicile of the Year” award.
“North Carolina’s captive insurance industry is growing, in no small part because of the customer-service-oriented staff at the Department of Insurance, as well as an active trade association in the state,” Commissioner Causey said. “Captive insurers are finding North Carolina to be a business-friendly state. They’re also finding the expert staff at the NCDOI to be knowledgeable and responsive as they apply thorough and appropriate regulation to the industry. We expect to see captive insurers continue to locate and relocate in North Carolina.”
The award was presented by U.S. Captive Review for the less than $5 billion in premiums category.
Captive insurance is a formalized self-insurance program that many businesses use as a means of managing their risks. The term “captive” originated when an Ohio business used mines solely for its operations. The mines were “captive,” solely for one business. The agent who developed the concept of an insurer that would insure only the risks of its parent, the Ohio business, is credited with forming the first “captive” insurer.
North Carolina’s captive program began in 2013, when the N.C. General Assembly enacted the state’s captive insurance law.
Since then, the industry has grown. North Carolina is now the fourth largest captive insurance domicile in the United States and the eight largest in the world.
Senior Deputy Commissioner Debbie Walker leads a team of 13 experts at the N.C. Department of Insurance making sure that Commissioner Causey’s and Chief Deputy Commissioner Dr. Michelle Osborne’s charge of customer-service driven regulation is carried out.
During the infancy of North Carolina’s program, most captive insurers were from small-to-medium-sized businesses. Now, as the state’s captive program matures and becomes a trusted domicile, larger businesses are also choosing North Carolina as the home of their captive insurers.