North Carolina Insurance Commissioner Mike Causey announces today that the state of North Carolina is now the third largest domicile for captive insurance companies in the U.S., trailing only Vermont and Utah.
A captive insurance company is a type of self-insurance that businesses use to manage their own risks. A ‘domicile’ is the country, state or territory that licenses a captive insurer and has primary regulatory oversight over that insurer. The captive's primary jurisdiction, be it a state, territory or other jurisdiction, is known as its “domicile”.
North Carolina has become an award-winning domicile in the 10 short years since the passage of the state’s Captive Insurance Act. North Carolina has licensed or approved more than 1,500 risk-bearing entities after licensing just three captives in its inaugural year.
“North Carolina’s competitive premium tax rates and laws provide us with a lot of discretion in the regulation of captive insurers, which helps us remain attractive to captive owners and captive managers alike,” Commissioner Causey said. “Laws drafted over the years designed to meet insurance needs of North Carolina businesses have had a positive economic impact, attracting new businesses to our state.”
North Carolina is now home to 311 captive entities, up from 294 in 2022, with Utah holding 439 and Vermont licensing 659.
“To ensure our captive law remains relevant and current, the North Carolina Captive Insurance Association and the Department continue to collaboratively propose legislative changes as necessary to meet the emerging needs of industry,” Commissioner Causey said. “We expect North Carolina’s captive insurance program to continue to respond to these needs with expansion to diverse industries and businesses of all sizes.”
North Carolina's captive insurance program, with support of Commissioner Causey, offers a combination of consistent regulation in a business-friendly environment with a domicile committed to responsive customer service and strong service provider relationships.
To learn more about captive insurance companies in North Carolina, visit www.nccaptives.com.