The North Carolina captive insurance company programme continues to have a positive economic impact on the state following its second full year of operation, with a notable increase in tax revenues.
A study, conducted by the North Carolina Department of Insurance, found that the economic benefits of the programme had increased to $15.3 million in 2015 from $12.8 million the previous year.
The revenue came from premium taxes paid by captive insurers licensed in the state and service provider and hospitality revenues generated by North Carolina businesses that provide services to the industry. The programme has also created approximately 50 jobs in North Carolina.
Insurance commissioner Wayne Goodwin commented: “I fully expect 2016 to be another successful year of operation for the captive insurance company programme in North Carolina.”
“The Department of Insurance continues to receive applications for new captive insurers, as well as from companies that want to re-domicile a captive insurer here.”
There are 336 captives currently operating in North Carolina. Of the 336, 96 are captive insurers and approximately 240 are cell or series entities.
North Carolina’s captives generated premium revenues of approximately $700 million during 2015, a substantial increase over the $125 million generated in 2014.
