(Raleigh, NC – Insurance News 360) – On June 27, North Carolina Insurance Commissioner Mike Causey announced that the state’s flourishing captive insurance program had an estimated $30 million impact on the state last year.
“North Carolina’s captive insurance law, while providing for appropriate regulation, allows companies to form and operate their own insurance companies without getting tangled up in unnecessary red tape,” Commissioner Causey said. “Other businesses and organizations may want to check out our business-friendly environment and form or relocate their own captive insurance company in North Carolina.”
Captive insurance is a form of self-insurance through which a business may form its own insurance company to manage its risks. Captive insurance allows businesses to obtain insurance coverage not readily available or too costly in the commercial market; it also reduces insurance costs, stabilizes pricing and customizes terms and conditions to meet the insured’s needs.
A study by the North Carolina Department of Insurnace revealed an estimate of economic impact aroun $30 million. This impact was generated by premium taxes paid to the state by licensed captive insurers as well as service provider and hospitality revenues generated by North Carolina businesses for services they provide to the captive insurance industry.
North Carolina’s captive insurance program has grown since 2013.
The 2017 impact of $30 million is significantly greater than the 2016 economic impact of $23 million, the 2015 economic impact of $15.3 million, and the 2014 economic impact of $2.5 million. That’s nearly a $71 million impact in the four years since the N.C. General Assembly established the captive insurance program.
Learn more about the N.C. captive insurance program at www.nccaptives.com.
Source: North Carolina Department of Insurance.