North Carolina licenses 47 new captives in 2020
North Carolina licensed 47 new captive insurance companies in 2020, and approved 126 cells and series.
The North Carolina Department of Insurance (NCDOI) predicted 2021 will see more growth for the captive sector. In January it licensed another 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 new captives in 2020 included 185 pure captive insurers, 36 protected cell captive insurers, seven risk retention groups and 22 special purpose captive insurers. They included both new insurer formations and redomestications from other captive domiciles.
They primarily write 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. The state has also seen growth in the number of captives obtaining licenses to provide medical stop loss coverage.
Mike Causey, North Carolina’s Insurance Commissioner, noted the state has now licensed or approved 1081 risk-bearing captive entities in total, including conditional licenses and approvals.
At the close of 2020 NCDOI was regulating 795 risk bearing captive insurance entities, comprising 250 captive insurance companies and 545 cells and series, including conditional licenses and approvals.
Causey expressed delight at North Carolina’s success in attracting national and international companies to set up captives there. “This division is made up of highly skilled analysts who consistently provide top-notch customer service that, combined with the state’s business-friendly legislation, make North Carolina a welcoming state to call home,” he said.
North Carolina was Highly Commended in Captive International’s US Awards.