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OFFICIAL NEWSLETTER OF NCCIA

VOLUME 7 NUMBER 2
February 2021

North Carolina Has Had Another Year Of Dramatic Growth

(SOUTHERN PINES)…..North Carolina has had another year of dramatic growth in the number of captives choosing the state as their legal domicile.

State Insurance Commissioner Mike Causey announced that the number of risk- bearing captive entities licensed or approved (including conditional licenses and approvals) since inception through year-end 2020 exceeded the 1000 milestone rising to 1,081.

I am thrilled that NCDOI’s captive insurance program continues to draw companies from around the nation – even the world,” said Commissioner Causey. “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.”











During 2020, the program was also recognized for its achievements.  It received the honor of “Captive Domicile of the Year” from Captive Review and “Highly Commended” from Captive International’s US Awards.

As of Dec. 31, 2020, 795 risk bearing captive insurance entities were under the regulation of the NCDOI, comprised of 250 captive insurance companies and 545 cells and series (including conditional licenses and approvals).  Also, in 2020, 47 captive insurance companies were licensed and 126 cells and series were approved. 

Early indications signify that 2021 will be another year of growth for North Carolina’s captive insurance industry.   Since Jan. 1, the NCDOI has already licensed one captive insurer with six more captive insurer applications under review.  In addition, six cells and series have received the NCDOI’s approval while 13 additional cells and series are under review.
The licenses granted by the state were for both new insurer formations as well as the transfer of captive insurers to North Carolina from other captive domiciles.  These newly licensed captive insurers are primarily writing property and casualty lines of business, including but not limited to tenant liability, general liability, professional liability, commercial automobile liability, and workers compensation. 

However, as in the past few years, the growth of captive insurers obtaining licenses to provide medical stop loss coverage continues.   It was recently announced that BevCap Management formed a new medical stop loss captive, HatterasRe, LTD in the state in 2020.

The Last Week In February Began To Bring Good News In The Nation’s Fight Against The COVID-19

The last week in February began to bring good news in the nation’s fight against the Covid-19 virus with some experts speculating that we are moving rapidly toward “herd immunity” to the virus. All Americans would welcome that event including the captive insurance industry.

Plans are progressing for the 2021 Annual Conference of NCCIA scheduled for August 30 through September 1 at Durham’s Washington Duke Inn and Golf Club. The facility, on the campus of Duke University, is ranked as the Number 1 University Affiliated Hotel in the United States. The property has been closed for the better part of a year due to the corona virus outbreak and will reopen in late March.

According to Thomas Adams, NCCIA President & CEO the association is looking forward to the return of it’s annual conference. “We are very pleased with the response to the conference return from both our members and sponsors. All of our major sponsorships have been spoken for and anecdotally our members are anxious to gather together again in person at the conference in August”, Adams said.

“Our domicile has continued it’s unprecedented growth in 2020 rising to become the 4th largest US Domicile and the world’s 9th largest making our Annual Conference an excellent one to attend”, according to Lea Riddle NCCIA Board Chair. We have a few limited sponsorships remaining for our August meeting. If you are interested in that opportunity please contact the association headquarters at the address below. Conference registration will open in late April.

EYES ARE FOCUSED ON THE US SUPREME COURT

as the clock continues to tick while we await the Court’s ruling in the CIC Insurance Services case against the IRS. Speculation among Court observers is that the ruling may well come in March. When the ruling is announced watch for a special issue of the NEWSLETTER to bring you industry reaction.
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