Captives gave North Carolina economy $30m boost in 2017
The captive insurance sector in North Carolina had an estimated $30 million impact on the state in 2017, according to insurance commissioner Mike Causey.
This is significantly greater than the 2016 economic impact of $23 million, the 2015 economic impact of $15.3 million, and the 2014 economic impact of $2.5 million.
Overall there has been a $71 million impact since the North Carolina General Assembly established its captive insurance programme in 2013.
The estimate comes from a recently completed study by the NC Department of Insurance that found that impact was generated by premium taxes paid to the state by licensed captive insurers as well as service provider and hospitality revenues generated by North Carolina businesses for services they provide to the captive insurance industry.
“North Carolina’s captive insurance law, while providing for appropriate regulation, allows companies to form and operate their own insurance companies without getting tangled up in unnecessary red tape,” said Causey. “Other businesses and organisations may want to check out our business-friendly environment and form or relocate their own captive insurance company in North Carolina.”