For Immediate Release: July 8, 2014
Improved Captive Insurance Law to Benefit North Carolina
RALEIGH -- Insurance Commissioner Wayne Goodwin today announced efforts that will make North Carolina an even more attractive home for captive insurance companies.
Amendments to the N.C. Captive Insurance Act signed into law on July 7, 2014, will make North Carolina more competitive with other captive states, provide additional flexibility to the insurance commissioner in the regulation of captives, and allow for the formation of additional types of captives in North Carolina.
"The captive insurance market in North Carolina has been growing rapidly since the state became a captive domicile in late 2013." said Goodwin. "I expect interest in captives to increase in the second half of 2014 with the improvements we've made to our captive legislation. Captive insurance provides businesses with new opportunities and benefits North Carolina's economy."
Captive insurance is typically a form of self-insurance in which an insurance company is formed to insure the risks of the parent company and its affiliates. Captives create jobs for those who form and perform services for the captive, and they generate premium tax revenues for the state or jurisdiction in which they are established.
North Carolina joined approximately 30 other states that have captive-enabling legislation in October 2013, and has already licensed nine captive insurance companies and approved 20 captive managers to work with North Carolina-licensed captives.
The legislative improvements will be discussed by N.C. Department of Insurance staff on August 26 at the first annual conference of the North Carolina Captive Insurance Association. More information about the NCCIA conference can be found at http://www.nccia.org/annual-conference-program/.
Learn more about captive insurance in North Carolina at www.nccaptives.com.