For Immediate Release April 5, 2018
“I applaud and welcome the solid growth of the state’s captive insurance company program,” said Commissioner Causey. “In just five years, as captive insurance companies have made North Carolina their home, the program’s growth has positively impacted the state’s economy by creating jobs and generating premium taxes and business revenues.”
Captive insurance is a type of self-insurance through which a business may form its own insurance company to insure its risks. Potential benefits of captive insurance include 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.
The North Carolina Captive Insurance Act enacted in October 2013 enabled the formation and operation of captive insurers in North Carolina. Since the program’s inception, the NCDOI has licensed 248 captive insurers and approved 437 cells and series. As of April 5, 2018, 635 risk-bearing captive insurance entities are under the regulation of NCDOI, including 232 active captive insurers and 403 active cells or series. The 232 active captive insurers are comprised of the following:
Pure captive insurers: 180
Protected cell captive insurers: 26
Risk Retention Groups: 6
Special purpose captive insurers: 20
Growth of the program is attributed to the formation of new captive insurers and the transfer of other captive insurers to this state from other U.S. and off-shore domiciles. Although the growth of small captive insurers continues to be strong, North Carolina is also seeing an increase in the licensing of larger captive insurers and risk retention groups. These insurers are primarily writing property and casualty lines of business; however, the NCDOI continues to see an upward trend in the formation of medical stop loss captive insurers. Other lines of business written by recently formed North Carolina captive insurers include tenant liability, surety, commercial auto, and warranty liability insurance.
The 2017 NCDOI captive insurance economic impact study is anticipated to be released in May 2018. This purpose of this study is to determine the favorable financial impact of the captive industry on the state’s economy.
2018 promises to be another year of achievement for North Carolina’s captive insurance industry as captive insurer service providers and owners, the North Carolina Captive Insurance Association, and the NCDOI work together to provide an excellent environment for the formation and operation of captive insurance companies.
To learn more about North Carolina’s captive insurance company program, visit www.nccaptives.com or contact Senior Deputy Commissioner Debbie Walker at 919-807-6165.
Contact Marla Sink 919-807-6017