2016 a Strong Year for North Carolina Captive Insurance Industry
Growth of North Carolina’s captive insurance company program once again exceeded expectations during the program’s third full year of operation, according to Insurance Commissioner Mike Causey.
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 percent, the North Carolina Department of Insurance (NCDOI) said in a statement.
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.
As of Jan. 23, 2017, more than 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
“North Carolina continues to prove to be a great place for captive insurers, and I look forward to what is in store for 2017,” said Causey.
NCDOI said the North Carolina Captive Insurance Act and the NCDOI’s prudent yet pro-business approach to regulation have aided in the success of the state’s captive industry.
The North Carolina Captive Insurance Act was passed in October of 2013, allowing North Carolina to become a jurisdiction for the formation and operation of captive insurers. North Carolina’s captive insurance company program has grown significantly since that time.
NCDOI said the captive insurance company industry has since favorably impacted North Carolina’s economy through jobs, premium tax revenue and business revenue.