31 October 2014Law & regulation

Captives in North Carolina on the rise

The North Carolina Department of Insurance has licenced 29 captive insurance companies to date and is expecting many more to follow.

This is according to a spokesperson in the department who explained that of those captive insurance companies, five of those captives are protected cell captive insurers that have a total of 29 protected cells. This brings the number of risk-bearing entities to 58.

A department decision is within the next week regarding another protected cell captive application, and a number of other applications are expected to be filed for department approval before year-end.

Earlier in 2014, the department estimated that it expected to licence 40 captives by December 2015. In September this year, the department announced that it Department believes it is likely that the number of captives will reach 40 by this year-end, a year earlier than expected.

“North Carolina has been making swift and steady progress in its first year as a captive domicile. Our goal has always been to become a trusted and leading U.S. domicile, and we’re building the foundation necessary to do that. We are committed to providing the consistent, sensible regulation and exemplary customer service that will make North Carolina an attractive place for captive insurers in the long-term,” said the department.

“The Department attributes the captive program’s success to the coordinated efforts of the North Carolina Department of Insurance, the North Carolina Captive Insurance Association, and the captive providers operating in North Carolina, all of which have worked hard this year to get the captive program off to a successful beginning.”