18 September 2014Law & regulation

North Carolina expects 40 new captives by year end

Experts at the North Carolina Department of Insurance (NCDOI) are expecting to licence more than 40 captives by the end of 2014.

To date, the NCDOI has licensed 12 captives, including five protected cell captive insurance companies that have multiple cells, and more than 16 license applications are currently under review.

The NCDOI added that the captive insurance programme will have favourably impacted North Carolina's economy by approximately $2 million by the end of 2014.

"North Carolina's captive insurance program is off to strong start, but more importantly, we are dedicated to the long-term success of the captive insurance program," said N C insurance commissioner Wayne Goodwin at the first annual conference of the North Carolina Captive Insurance Association in August.

"The North Carolina Captive Insurance Act became effective in October 2013 after receiving unanimous support in the General Assembly. We started out with what I believe is a truly state-of-the-art captive insurance law that provides a sensible pro-business approach to captive regulation. And we continue to review and improve our legislation to be responsive to the needs of captive insurers," Goodwin said.

Sixteen captive redomestication applications submitted by captives that are managed by Management Services International (MSI) are currently under review by the department. These applicants intend to redomesticate to North Carolina by September 30, 2014.

Upon approval of the redomestication of these captives, MSI will become one of the largest captive managers within North Carolina, and the number of North Carolina captives will increase to at least 28.