North Carolina Licensed 47 Captive Insurance Companies in 2020

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February 03, 2021 |

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The North Carolina Department of Insurance (NCDOI) reported that the state licensed 47 captive insurance companies and approved 126 cells or series in 2020.

Through the end of 2020, the state had licensed or approved 1,081 risk-bearing captive insurance entities from the inception of the state's captive program in 2013, an NCDOI statement said.

As of December 31, North Carolina was regulating 795 risk-bearing captive insurance entities including 250 captive insurance companies and 545 cells and series (including conditional licenses and approvals), according to the NCDOI.

"I am thrilled that NCDOI's captive insurance program continues to draw companies from around the nation—even the world," Mike Causey, North Carolina commissioner of insurance, said in the statement. "This division is made up of highly skilled analysts who consistently provide top-notch customer service that, combined with the state's business-friendly legislation, make North Carolina a welcoming state to call home."

As of year-end 2020, North Carolina captive insurance companies included 185 pure captives, 36 protected cell captive insurers, 7 risk retention groups, and 22 special purpose captive insurers.

Since January 1, the NCDOI has already licensed one captive insurance company with six more captive applications under review. In addition, 6 cells and series have received NCDOI approval while 13 additional cells and series are under review.

Licenses issued in 2020 included both new captive insurance company formations and the transfer of captive insurance companies to North Carolina from other domiciles. Newly licensed captives are primarily writing property and casualty insurance lines of business, including tenant liability, general liability, professional liability, commercial automobile liability, and workers compensation.

The state also is seeing growth in captive insurance companies obtaining licenses to write medical stop loss coverage, the statement said, including the formation in 2020 of a medical stop loss captive, HatterasRe LTD by BevCap Management.

February 03, 2021