Despite receiving final approval for captive legislation only in October of last year, North Carolina licensed three captives and a protected cell insurance company by the close of 2013, with a speed of turn-around commended by Thomas Adams, president and CEO of the North Carolina Captive Insurance Association.
Adams, whose association was formed in May of 2013, said of the state’s recent successes in the captive area: “We are pleased that the NCDOI has licensed North Carolina’s first companies and did so before the close of 2013, making good the promise to move swiftly on license applications in the state.”
Adams said that the North Carolina Captive Insurance Association (NCCIA) had worked closely with the North Carolina Department of Insurance (NCDOI) and legislative leaders to enact captive legislation, which received final approval from the administration of Governor Pat McCrory in October.
“The speed of the Department staff in reviewing and approving this first batch of applications in about a month is a testament to the state’s desire to be a business friendly place to domicile captives. It also makes a strong statement that NCDOI is committed to make that desire a reality”, said Adams.
North Carolina has been able to attract captives from both within the state and from elsewhere in the US. North Carolina, it would seem, is not simply concentrating on those entrants looking to the ‘home state advantage’ as a key reason behind their domicile decision, but is keen to develop a significant footprint in the US.
North Carolina has focused very much on the economic benefits of retaining local companies and bringing other captives to the state. As Alex Webb, chairman of the NCCIA explained, “from these early licenses it is apparent that the legislature was right that captives are a true aid to economic development. We are gratified that companies, so early in the development of North Carolina’s captive insurance industry are locating in our state and there is a growing realization instate that you should look at the economic advantages of captive insurance and locating that business in North Carolina.”
North Carolina, captive insurance, formations, legislation