According to NC Insurance Commissioner Mike Causey, the numbers show North Carolina’s captive insurance program is continuing to grow and prosper in North Carolina’s favorable business environment.
“Our captive insurance program has made even greater strides in the last year,” said Commissioner Causey. “Businesses from all over are finding that our state’s thorough but fair regulation is a plus when it comes time to choose a jurisdiction in which to domicile a captive insurance company. The future for the captive insurance industry in our state couldn’t look brighter.”
The NC Department of Insurance (“NCDOI”) recently completed its study of the 2016 economic impact of its North Carolina captive insurance company program on the state, estimating that impact to be $23 million. This impact was generated by premium taxes paid to the State of NC by NC licensed captive insurers, as well as service provider and hospitality revenues generated by NC businesses that provide services to the NC captive insurance industry.
The growth is steady and growing every year, with this year’s impact of $23 million comparing to the 2015 economic impact of $15.3 million and 2014’s economic impact of $2.5 million. Causey reported that in total, for the first 3 full years of operation, the favorable impact of the industry on NC’s economy has been approximately $41 million and the creation of 60 new jobs.
Commissioner Causey also reported that NCDOI’s captive insurance program was one of five states on the US Captive Awards 2017 short list for the US Captive Domicile award.
The success of the captive industry in the state will be a major topic of the upcoming NC Captive Insurance Association Conference August 21–23 in Charlotte, NC. The NCDOI’s captive insurance team will be participating throughout the conference, starting with Captive Insurance leader Debbie Walker’s participation in the 101 Fundamentals Seminar on August 21; the regulatory team presenting at the Opening General Session on August 22; team members participating in panels during breakout sessions; and Commissioner Causey speaking during the Commissioner’s Luncheon on August 22. NCDOI will be exhibiting during the conference and available for meetings for anyone that would like to discuss North Carolina’s captive insurance program.
Captive insurance is a form of self-insurance through which a business may form its own insurance company to insure its risks. There are a number of reasons that captive insurance may be beneficial to a business. These may include the ability to obtain insurance coverage that is not readily available or is too costly in the commercial market; reduction of insurance costs; stabilized pricing; and customization of the terms and conditions of insurance products to meet the insured’s needs.
Learn more about the NC captive insurance program at www.nccaptives.com.