Friday, February 9, 2024

Commissioner Causey lauds Captive Insurance’s contributions to N.C. economy

RALEIGH
Feb 9, 2024

North Carolina Insurance Commissioner Mike Causey today congratulated the state’s Captive Insurance Program for topping 1,500 licensed entities since the program began 10 years ago.

“Since the passage of the Captive Insurance Act 10 years ago, North Carolina’s program has experienced tremendous growth,” Commissioner Causey said. “I am excited that the Department’s Captive Insurance Program continues to attract businesses to our state.”

The number of risk-bearing captive entities licensed or approved since inception through year-end 2023 topped 1,500, evidence that North Carolina, with its strong economy and business friendly environment, continues to be a leading domicile for captive insurance companies.

The program’s growth has been fueled by meeting the risk management needs of captive owners and members with prudent regulation making captive formation more feasible along with a strong commitment to providing excellent customer service.

During 2023, the program was also recognized for its achievements. It was short-listed for the honor of “Captive Domicile of the Year” by Captive Review and received “Highly Commended” from Captive International’s U.S. Awards.

As of Dec. 31, 2023, risk bearing captive insurance entities under the regulation of the NCDOI totaled 1,069, comprised of 311 captive insurance companies and 758 cells and series. In 2023, the NCDOI licensed or conditionally licensed 49 captive insurance companies, with nearly 100 cells and series approved or conditionally approved.

As of yearend 2023, captive insurers were comprised of the following:

Pure captive insurers:                                              234
Protected cell captive insurers:                           46
Risk retention groups:                                             10
Special purpose captive insurers:                      21

The licenses granted by the state during 2023 were both for new insurer formations as well as the transfer of other captive insurers to North Carolina from other captive domiciles. Licensed captive insurers represent a wide variety of industries including healthcare, construction, financial services and insurance.

North Carolina’s success as a captive domicile is expected to continue with its portfolio of licensed captive insurers expanding in size and diversity throughout 2024.

“I am eager to see what the next decade means to the industry and North Carolina’s Captive Insurance Program,” Commissioner Causey said.

Commissioner Causey and the NCDOI captive regulatory team will be participating in the upcoming North Carolina Captive Insurance Association Conference April 28 - May 1 at the Renaissance Hotel in Asheville. Registration information for this event is available on the association’s website North Carolina Captive Insurance Association (nccia.org).

For more information about our program, contact Deputy Commissioner Lori Gorman at Lori.Gorman@ncdoi.gov. or visit www.nccaptives.com.

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