For Immediate Release: April 5, 2016
Captive Insurance Program Benefits North Carolina’s Economy
RALEIGH -- Insurance Commissioner Wayne Goodwin today announced that the North Carolina captive insurance company program continues to have a positive economic impact on the state following its second full year of operation.
A study conducted by the North Carolina Department of Insurance found the impact from the program was approximately $15.3 million in 2015, an increase of $12.8 million over 2014. The benefits include premium taxes paid to the state of North Carolina by captive insurers licensed in the state and service provider and hospitality revenues generated by North Carolina businesses that provide services to the captive insurance company industry.
In addition to the economic benefits of $15.3 million, the program creates jobs. Approximately 50 jobs in North Carolina are attributed to the program.
“I fully expect 2016 to be another successful year of operation for the captive insurance company program in North Carolina,” said Goodwin. “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.”
Currently, 336 risk-bearing captive insurance entities are under the regulation of NCDOI, including 96 captive insurers and approximately 240 cells or series. Year-end financial information reveals the captive insurers generated premium revenues of approximately $700 million during 2015, a significant increase over revenues of approximately $125 million generated in 2014.
Captive insurance is a form of self-insurance through which a business forms its own insurance company to insure its risks. Potential benefits of captive insurance are reduced insurance costs, stabilized pricing, customization of policy terms and conditions to meet a business’s needs, and the ability to obtain coverage that is not readily available or too costly in the commercial market.
Learn more about the North Carolina captive insurance program at www.nccaptives.com.