Causey says captive insurers like setting up shop in North Carolina
Published 1:41 pm Thursday, February 2, 2023
North Carolina Insurance Commissioner Mike Causey declared that the state’s Captive Insurance Program remains among the world’s strongest domiciles as it enters its second decade of operation.
“We are excited by the continued success of our captive program here in North Carolina as we approach the 10th anniversary of the passage of the Captive Insurance Act in 2013,” said Causey. “Our program’s growth is fueled by helping meet the risk management needs of captive owners and members with business-friendly regulation and a focus on professional, responsive customer service. North Carolina is one of the top places for captive insurers to set up shop.”
The program continues to see businesses coming to North Carolina to establish their captive insurance. The number of risk-bearing captive entities licensed or approved (including conditional licenses and approvals) since inception through 2022 is now more than 1,400, evidence that North Carolina, with its strong economy, is an attractive and welcoming home for captive insurers, noted a press release from the N.C. Department of Insurance.
There were 1,024 risk bearing captive insurance entities under the regulation of the NCDOI as of Dec. 31, 2022. Those entities are comprised of 294 captive insurance companies and 730 cells and series (including conditional licenses and approvals). In 2022, 62 captive insurance companies were licensed with more than 100 cells and series approved.
The new 2022 captive insurers were comprised of the following:
Pure captive insurers: 215
Protected cell captive insurers: 51
Risk retention groups: 10
Special purpose captive insurers: 18
The licenses granted by the state were for both new insurer formations as well as the transfer of other captive insurers to North Carolina from other captive domiciles. These newly licensed captive insurers represent varied industries such as healthcare, construction, financial services and insurance.
“All indications signify that 2023 will be another year of growth for North Carolina’s captive insurance industry as companies of all sizes seek increased flexibility and lower costs while managing their risk profiles in the hardening market,” stated the release.
Captive insurance is a formalized self-insurance program that many businesses use as a means of managing their risks.
To learn more about the state’s captive insurance program, Causey, Chief Deputy Commissioner Jackie Obusek and the NCDOI captive regulatory team will be participating in the upcoming North Carolina Captive Insurance Association Conference May 7-10 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, contact Deputy Commissioner Lori Gorman at Lori.Gorman@ncdoi.gov or visit www.nccaptives.com.
SUBSCRIBE TO THE COASTLAND TIMES TODAY!