9 July 2014Law & regulation

Improved captive law to benefit North Carolina

Insurance commissioner Wayne Goodwin has announced efforts that will make North Carolina an even more attractive home for captive insurance companies.

Amendments to the N.C. Captive Insurance Act signed into law on July 7th, 2014, will make North Carolina more competitive with other captive states by providing additional flexibility to the insurance commissioner in the regulation of captives, and allowing for the formation of additional types of captives in the state.

"The captive insurance market in North Carolina has been growing rapidly since the state became a captive domicile in late 2013." says Goodwin. "I expect interest in captives to increase in the second half of 2014 with the improvements we've made to our captive legislation. Captive insurance provides businesses with new opportunities and benefits North Carolina's economy."

Since its inception, the North Carolina captive space has created many jobs, and has contributed to the generation of premium tax revenues for the state.

North Carolina joined approximately 30 other states that have captive-enabling legislation in October 2013, and has already licensed nine captive insurance companies and approved 20 captive managers to work with North Carolina-licensed captives.

The legislative improvements will be discussed by the N.C. Department of Insurance staff on August 26th at the first annual conference of the North Carolina Captive Insurance Association.