North Carolina’s Captive Insurance Program Fuels Economic Expansion
Over a decade since its inception, North Carolina’s captive insurance program continues to significantly contribute to the state’s economic landscape, as highlighted by NC Insurance Commissioner Mike Causey.
“Businesses with distinctive insurance requirements are discovering that North Carolina offers an exceptional environment for conducting business through its captive insurance program,” states Causey.
He adds, “We are thrilled by the ongoing expansion of our captive program and eagerly embrace the innovations brought by service providers to address the emerging risks in the industry.”
By the conclusion of 2024, North Carolina had either licensed or approved an impressive total of over 1,600 risk-bearing captive entities since the General Assembly enacted the Captive Insurance Act back in 2013.
“This figure underscores that North Carolina, with its vibrant economy, remains an appealing and hospitable domicile for captive insurers within this flourishing sector,” Causey remarks.
As of December 2024, the NC Department of Insurance had regulatory oversight over 1,064 risk-bearing captive entities, comprising 293 captive insurance companies and 771 cells and series.
During 2024 alone, the state issued licenses to 33 new captive insurance companies and approximately 70 cells and series.
In the preceding year, North Carolina became the domicile for 212 pure captive insurers, 49 protected cell captive insurers, 9 risk retention groups, and 23 special purpose captive insurers.
The licenses granted span new insurer formations as well as 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 endows the Insurance Commissioner with discretionary powers in regulating captive insurers, allowing for adaptability in response to evolving business risk management needs.
Forecasts indicate that 2025 will be yet another prosperous year for North Carolina’s captive insurance industry.
In the face of a hardening insurance market, business owners are increasingly leaning towards captive insurers for customized coverage, enhanced control over risk management strategies, and cost-effective solutions, including accessing reinsurance markets.
