North Carolina Department of Insurance—Captive Insurance Companies Division

North Carolina Captive Domicile

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.

Captive Domicile Contacts

Mike Causey-NC-SF3

Mike Causey
Insurance Commissioner

Debra M. Walker

Debra Walker
Senior Deputy Commissioner
Office: (919) 807–6165
Fax: (919) 807–6635
Email
Biography

Matt Mascia

Matt Mascia
Chief Financial Analyst
Office: (919) 807–6181
Fax: (919) 807–6635
Email
Biography

Leane A. Rafalko

Leane A. Rafalko, CFE
Chief Captive Analyst
Office: (919) 807–6149
Fax: (919) 807–6635
Email
Biography

Physical Address:
North Carolina Department of Insurance
Captive Insurance Companies Division
Albemarle Building
325 N. Salisbury Street
Raleigh, NC 27603

Mailing Address:
North Carolina Department of Insurance
Captive Insurance Companies Division
1203 Mail Service Center
Raleigh, NC 27699–1203
Website

Contact information for the full NCDOI captive insurance regulatory team is available at this link.



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Captive Domicile Summary

North Carolina is one of the fastest-growing captive domiciles.

At the end of 2017, 233 captives were domiciled in North Carolina, up from just 52 captives 4 years earlier. A record 85 captives were licensed in 2016, followed by 66 new captives in 2017.

State regulators attribute that growth to several factors, including an up-to-date and attractive captive law and top customer service.

 

Captive Domicile Statistics

In total, the NCDOI has licensed 248 captive insurers and approved 437 cells and series since the inception of the program. There are 635 risk-bearing captive insurance entities under the regulation of NCDOI, including 232 active captive insurers and 403 active cells or series. The 232 active captive insurers are comprised of the following.

Active Captives North Carolina Year End 2017
 Type Count
Pure captive insurers 180
Protected cell captives 26
Risk retention groups 6
Special purpose captive insurers 20
Total Captive Count*
North Carolina
Year Captives**
2017 233
2016 178
2015 93
2014 52
2013 4
*At year end
**Includes active and inactive captives

Captives' Gross Written Premiums
North Carolina
Year Gross Premium
2017 $824.0 million
2016 $725.8 million
2015 $680.7 million
2014 $130.1 million
2013 $8.3 million
*At year end
**Includes active and inactive captives

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

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:

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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.
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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.
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Reasonable capital requirements.
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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.
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No NCDOI fees (except for a special purpose financial captive application fee).
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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.
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Provisional licensing approval subject to certain requirements.
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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.

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