North Carolina Tops 1K Captive Insurers in 7 Years

February 2, 2021

The North Carolina Department of Insurance has approved or licensed more than 1,000 risk-bearing captive entities (including conditional licenses and approvals) since its captive program inception in 2013 through year-end 2020, according to a statement from the department.

As of Dec. 31, 2020, 1,081 captive insurance entities were under the regulation of the NCDOI, comprised of 250 captive insurance companies and 545 cells and series (including conditional licenses and approvals). Also, in 2020, 47 captive insurance companies were licensed, and 126 cells and series were approved.

As of year-end 2020, licensed captive insurers were comprised of the following:

  • Pure captive insurers: 185
  • Protected cell captive insurers: 36
  • Risk retention groups: 7
  • Special purpose captive insurers: 22

NCDOI said all indications signify that 2021 will be another year of growth for North Carolina’s captive insurance industry. Since Jan. 1, the NCDOI has licensed one captive insurer with six more captive insurer applications under review. In addition, six cells and series have received the NCDOI’s approval while 13 additional cells and series are under review.

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 are primarily writing property and casualty lines of business, including but not limited to tenant liability, general liability, professional liability, commercial automobile liability, and workers compensation, NCDOI said.

However, the department said growth of captive insurers obtaining licenses to provide medical stop loss coverage and continues to do so. Most recently, BevCap Management formed a new medical stop loss captive, HatterasRe, LTD in the state in 2020.

The department wrote its first captive policy in 2014 after passing The North Carolina Captive Insurance Act in 2013, which allowed for the formation of captive insurance companies in the state.

Commissioner Mike Causey touted the growth of the program saying the divisions is made up of highly skilled analysts, combined with the state’s business-friendly legislation, “make North Carolina a welcoming state to call home.”

Source: North Carolina Department of Insurance

Topics Carriers North Carolina

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