North Carolina’s captive insurance program continues to exceed expectations as the program begins its third full year of operation, according to North Carolina Insurance Commissioner Wayne Goodwin.
The North Carolina Department of Insurance became authorized to license captive insurance companies in October of 2013 after the passage of the North Carolina Captive Insurance Act, and the program has grown significantly since that time, Goodwin reported.
As of Jan. 25, 2016, 336 risk bearing captive insurance entities are under the regulation of NCDOI—96 captive insurers and 240 cells or series. Since year-end 2014, the number of captive insurers increased by 44 and the number of cells or series almost doubled.
The North Carolina Department of Insurance (NCDOI) said since the inception of the North Carolina Captive Insurance Act, the captive insurance company industry has favorably impacted North Carolina’s economy by creating jobs and generating premium taxes and business revenues.
“From the start, we have been committed to growing and continually improving the captive insurance program in North Carolina,” said Goodwin. “I am proud that, in such a short time, we have become one of the fastest growing states for captive insurance in the country.”
NCDOI credits the success of North Carolina’s captive insurance program to a number of factors, including the well-crafted North Carolina Captive Insurance Act; NCDOI’s pro-business approach to regulation; the support of and participation by captive insurer owners, captive insurance managers and other captive insurance service providers; and the contributions of the North Carolina Captive Insurance Association.
Captive insurance is a form of self-insurance through which a business may form its own insurance company to insure its risks. Potential benefits of captive insurance are 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.