North Carolina's captive insurance programme continues to bolster the state's economy over a decade since its establishment, according to NC Insurance Commissioner Mike Causey.
"Businesses with unique insurance needs are finding North Carolina a great place to conduct business through its captive programme," Causey states.
He continues: “We are excited by the continued growth of our captive programme and welcome the innovation that service providers bring to address emerging risks in the industry.”
By the end of 2024, the state had licensed or approved over 1,600 risk-bearing captive entities since the General Assembly enacted the Captive Insurance Act in 2013.
"That number is evidence that North Carolina, with its strong economy, remains an attractive and welcoming home for captive insurers in this thriving industry," Causey notes.
As of December 2024, the NC Department of Insurance regulated 1,064 risk-bearing captive entities, comprising 293 captive insurance companies and 771 cells and series.
In 2024 alone, the state licensed 33 new captive insurance companies and approximately 70 cells and series.
The previous year saw NC domicile 212 pure captive insurers, 49 protected cell captive insurers, 9 risk retention groups, and 23 special purpose captive insurers.
Licenses granted encompass new insurer formations and captives relocating to North Carolina from other jurisdictions.? These newly licensed captives serve diverse industries, including financial services, transportation, healthcare, construction, and manufacturing.
State legislation grants the Insurance Commissioner discretion in regulating captive insurers, enabling adaptability to evolving business risk management needs.
Projections indicate that 2025 will be another robust year for North Carolina's captive insurance industry.
Facing a hardening market, business owners are increasingly turning to captive insurers for tailored coverage, enhanced control over risk management, and cost-effective options, including access to reinsurance markets.
