South Carolina Captive Industry Has Generated over $539 Million
May 13, 2019
Being one of the largest captive insurance company domiciles in the United States has had a big and positive impact on the South Carolina economy, according to an academic analysis.
The analysis by the University of South Carolina's Moore School of Business found that South Carolina captives now have a $56.8 million annual economic impact in the state.
"This annual economic impact corresponds to roughly 400 jobs and over $22 million in labor income for South Carolinians that would not exist otherwise," a summary of the analysis noted.
Since the passage of legislation in 2000 by South Carolina lawmakers allowing the formation of captives, "the captive insurance industry has generated total economic activity in excess of $539 million for South Carolina," the analysis said.
Captives have an economic impact in several ways, according to the analysis. For example, captive managers have to hire staff, who, in turn, spend their wages. Indeed, the analysis noted that the South Carolina captive industry has helped to produce nearly $211 million in labor income and $14 million in state tax revenue since 2000.
South Carolina has become one of the largest captive domiciles in the United States. At the end of 2018, South Carolina had 169 captives, while in 2017, the most recent year official figures are available, the state's captives generated $3.1 billion in premium volume.
Find out more about South Carolina by linking on the image below.
May 13, 2019