Home Domiciles North Carolina Captive Domicile

North Carolina Department of Insurance

North Carolina welcomes captive insurer owners and service providers to become a part of the state's outstanding captive insurance program. With its modern North Carolina Captive Insurance Act and dedicated team of captive insurance professionals, North Carolina provides a great home for captive insurers.

Since the inception of the program in 2013, the strong growth of the captive insurance industry has been a result of the program's benefits, which include but are not limited to the low regulatory formation and operational costs; its reasonable and appropriate regulatory approach; and the dedicated captive insurance regulatory team of the North Carolina Department of Insurance (NCDOI), which is comprised of experienced, knowledgeable insurance professionals, including CPAs and in-house actuaries committed to providing outstanding customer service.

To learn more about the benefits of forming a captive insurer in North Carolina, we recommend exploring the NCDOI's website, which includes useful information, including the NCDOI staff's contact information, and other resources regarding the captive insurance program. Contact information for the full NCDOI captive insurance regulatory team is available at this link.

Company Contacts

Mike Causey

Insurance Commissioner

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Jackie Obusek

Senior Deputy Commissioner

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Lori Gorman

Deputy Commissioner

(919) 807–6165

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Mailing Address:
Albemarle Building, 325 N. Salisbury St.
Raleigh, NC 27603

Virtual Contact:
Website: Website

Captive Domicile Summary

Since the enactment of its captive statute in 2013, North Carolina has established itself as a leading captive insurance domicile.

At the end of 2022, 294 captives were domiciled in North Carolina, up from just 52 captives 8 years earlier. There also are 730 operating cells and series, bringing total risk bearing entities to over 1,000.

State regulators attribute that growth to several factors, including an up-to-date and attractive captive law, low regulatory costs, and a commitment to customer service.

"With the hardening of the commercial market, we are continuing to see an increase by companies of all sizes interested in forming captive insurers to meet their risk management needs," said Lori Gorman, deputy commissioner of the Captive Insurance Division at the North Carolina Department of Insurance. "We strive to partner with captive owners and managers by providing prompt, accessible, and business-friendly regulation," Ms. Gorman added.

Captive Domicile Statistics

North Carolina Captives at Year-End 2022 by Captive Type
Type	Count
Pure captive insurers	215
Protected cell captives	51
Risk retention groups	10
Special purpose captive insurers	18

Total Captive Count North Carolina
Year	Captives
2022	294
2021	257
2020	250
2019	235
2018	244

Captives' Gross Written Premiums North Carolina
Year	Premium Volume
2022	$1.34 billion*
2021	$1.3 billion
2020	$932.7 million
2019	$928.0 million
2018	$920.8 million
*Current estimate

Applicable Captive Insurance Laws

The North Carolina Captive Insurance Act became effective in October 2013 after unanimous approval by the North Carolina General Assembly, enabling the formation and operation of captive insurers in North Carolina. The Act is found in Chapter 58 Article 10 Part 9 of the North Carolina General Statutes and is available on the North Carolina General Assembly website.

An unofficial document prepared by the NCDOI containing the Act is available in PDF format at Chapter 58 Article 10 Part 9 North Carolina General Statutes. Other information about North Carolina's captive insurance laws are also found at this link.

Resources

North Carolina Department of Insurance Captive Insurers brochure

Letter from the Commissioner

North Carolina Department of Insurance website

North Carolina Captive Insurance Association website

Domicile Benefits

The NC Captive Insurance Act (Act) provides the Commissioner with discretion to regulate each captive insurer according to its unique risk profile. The Act also provides for:

Formation and operation of all types and structures of captive insurers including pure, protected cell, special purpose, industrial insured, branch, association, and special purpose financial captive insurers as well as risk retention groups.

Group and agency captive insurers, along with other types of captive insurers not specifically defined in the Act, may be licensed as special purpose captive insurers, if the Commissioner deems the applicants' plans appropriate.

Reasonable capital requirements.

Unique NCDOI examination approach. Under the Act, the Commissioner is not required to schedule mandatory NCDOI examinations, but instead examinations are performed as necessary on a "target" basis focusing NCDOI resources on the important issues and providing a cost savings to well-run, financially sound captives.

No NCDOI fees (except for a special purpose financial captive application fee).

Possible exemption from certain annual reporting requirements (such as an exemption from the annual report, if an annual independent CPA audit report will be filed). Each exemption request is considered by the Commissioner on a case-by-case basis.

Provisional licensing approval subject to certain requirements.

Inactive captive insurer status, resulting in a waiver of the premium tax requirements and possible waiver of financial filing requirements.

The dedicated in-house NCDOI captive insurance regulatory team is comprised of experienced, knowledgeable insurance professionals, including CPAs and actuaries. The team provides reasonable, consistent, and appropriate regulation while maintaining a high standard of customer service. The team is accessible and responsive to the industry, evaluating filings in a very timely manner.

With these benefits, it is clear to see why North Carolina is the best domicile choice for captive insurance companies.