Insurance Commissioner Mike Causey today announced that North Carolina’s Captive Insurance Program continues to grow and contribute to the state’s economy more than a decade after its inception.
“Businesses with unique insurance needs are finding North Carolina a great place to conduct business through its Captive Insurance Program,” Commissioner Causey said. “We’re excited by the continued growth of our captive program and welcome the innovation that service providers bring to address emerging risks in the industry.”
As 2024 concluded, more than 1,600 risk-bearing captive entities have been licensed or approved In North Carolina since the General Assembly approved the state’s Captive Insurance Act in 2013.
“That number is evidence that North Carolina, with its strong economy, remains an attractive and welcoming home for captive insurers in this thriving industry,” Commissioner Causey said.
Captive insurance is a form of self-insurance through which a business may form its own insurance company to manage its risks.
As of the end of last year, 1,064 risk bearing captive insurance entities were under the regulation of the Department of Insurance. This number includes 293 captive insurance companies and 771 cells and series. Last year, 33 new captive insurance companies were licensed along with approximately 70 cells and series.
A cell or series structure operates as part of a larger captive entity but maintains its own segregated assets and liabilities to manage risks.
In 2024, North Carolina had 212 pure captive insurers domiciled in the state, 49 protected cell captive insurers, nine risk retention groups and 23 special purpose captive insurers.
The licenses granted in North Carolina include new insurer formations as well as captives transferring to the state from other captive domiciles. These newly licensed captive insurers represent varied industries, such as financial services and insurance, transportation, healthcare, construction and manufacturing.
State law gives the Commissioner of Insurance discretion in regulating captive insurers. This flexibility allows state regulators to meet the evolving risk management needs of business owners of all sizes. Hallmarks of the state’s program are its prudent, business-friendly regulation along with a commitment to excellent customer service.
Signs suggest that 2025 will be another strong year for North Carolina’s captive insurance industry. As business owners look for ways to manage their risk profiles in a hardening market, many are turning to captive insurers for the benefits of customized coverages, greater control of their risk management programs and more cost-effective options, such as access to the reinsurance markets.
Commissioner Causey, Chief Deputy Commissioner Jackie Obusek and the Department’s captive regulatory team will be participating in the upcoming N.C. Captive Insurance Association Conference May 14-17 at the Le Meridian in Charlotte. Registration information is available at the association’s website, https://www.nccia.org/.
For more information about the North Carolina Captive Insurance Program, contact Deputy Commissioner Lori Gorman at Lori.Gorman@ncdoi.gov or visit www.nccaptives.com.