The economic impact of North Carolina’s captive insurance company program increased significantly in its second full year of operation, according to a study conducted by the North Carolina Department of Insurance.
North Carolina Insurance Commissioner Wayne Goodwin reported the results of the study found the impact from the program was approximately $15.3 million in 2015, an increase of $12.8 million over 2014. The state authorized the Department of Insurance to license captive insurance companies in October of 2013 after the passage of the North Carolina Captive Insurance Act.
The benefits on the state since then, according to Goodwin, include premium taxes paid to the state of North Carolina by captive insurers licensed in the state and service provider and hospitality revenues generated by North Carolina businesses that provide services to the captive insurance company industry.
In addition to the economic benefits of $15.3 million, NCDOI said the program gas created jobs. Approximately 50 jobs in North Carolina are attributed to the program.
“I fully expect 2016 to be another successful year of operation for the captive insurance company program in North Carolina,” said Goodwin. “The Department of Insurance continues to receive applications for new captive insurers, as well as from companies that want to re-domicile a captive insurer here.”
Currently, 336 risk-bearing captive insurance entities are under the regulation of NCDOI, including 96 captive insurers and approximately 240 cells or series. Year-end financial information from NCDOI shows captive insurers generated premium revenues of approximately $700 million during 2015, a significant increase over revenues of approximately $125 million generated in 2014.
Source: North Carolina Department of Insurance
- North Carolina Touts Continued Growth of Captive Insurance Program
- North Carolina Plans Changes to Captive Program
- North Carolina Approves Amendments to Captive Insurance Law
- North Carolina Touts Strong First Year with Captives
Was this article valuable?
Here are more articles you may enjoy.