The number of North Carolina’s licensed captive companies grew by 91 percent last year, while approved protected cells and series saw an increase of over 50 percent, according to Debbie Walker, deputy commissioner of the North Carolina Department of Insurance.
Speaking to attendees at the opening plenary of the state’s captive insurance conference, Walker said that in 2016, North Carolina licensed 85 captive insurance companies and approved 132 protected cells or series.
Walker revealed that the state currently has 187 active licensed captive insurance companies and 348 cells.
The state has also seen a trend of redomestications, with 53 in total, from both onshore and offshore, since its captive insurance programme began.
Offshore locations included the British Virgin Islands, Anguilla, Nevis, St Kitts and St Lucia, while onshore jurisdictions were Alabama, Hawaii, Delaware, South Carolina, Utah and Vermont.
Walker said: “One of the reasons for the redomestications included captive managers, who already have business in the state, bringing other companies they work with offshore back onshore.”
The most common sector for insureds was the healthcare sector, followed by construction and financial and insurance activities.
Healthcare was also the top industry for protected cells, retail was second most popular and financial and insurance activities come in at third.
In terms of geographic location, 84 percent of North Carolina captives are out-of-state captives, along with 98 percent of the state’s protected cells or series.
Between 2014 and 2016 the state recorded an economic impact of $41 million from the captive insurance industry, creating 60 plus jobs.
Walker explained that this figure is made up from premium tax revenues, service provider revenues and hospitality revenues.
