(Southern Pines)…..The New Year has brought more governmental activity in Washington and a major announcement from North Carolina’s new Insurance Commissioner Mike Causey.
First, from Commissioner Causey who reports that North Carolina’s captive insurance company program has once again exceeded expectations during the program’s third full year of operation. “North Carolina’s captive insurance program continues to experience growth in the number of captives and I am certain that we will continue to prove to be a great place for captive insurers and I look forward to what is in store for 2017”.
As of January 23, 2017 over 550 risk bearing captive insurance entities are under the regulation of NCDOI, including 190 captive insurers that are licensed or provisionally licensed and 363 cells or series that are approved or provisionally approved. The 190 stand alone captive insurers are comprised of the following:
- Pure captive insurers 150
- Protected Cell captive insurers 23
- Special purpose captive insurers 12
- Risk retention groups 5
During 2016, the number of North Carolina licensed captive insurers has more than doubled and the number of cells or series approved grew by more than 50%.The growth is attributable to both new captive insurer formations, as well as redomestications from other U.S. and off-shore jurisdictions. While the growth of small captive insurers continues to be strong, North Carolina is also experiencing growth in larger captive insurers and risk retention groups.
According to Jeremy Colombik NCCIA 2017 Chairman “The success of North Carolina’s captive insurance program is attributable to a number of factors including the strength of the NC Captive Insurance Act and the legislative leadership’s willingness to adapt the act to accommodate market activity in a prudent yet pro-business manner, support and participation of the captive insurance industry and strong leadership from the NCDOI.”
Meanwhile, in Washington efforts to eliminate the onerous potential effects of IRS 2016-66 continue. NCCIA and other state captive associations were successful in winning an extension for 90 days of the implementation of the Notice. Under the leadership of the association’s Government Affairs Chairman, W.Y. Alex Webb a letter to the IRS was promulgated this week requesting “a full withdrawal of the Notice and a waiver of the disclosure requirements the notice imposes on participants in the alleged reportable transaction, and their material advisors.” The letter signed on behalf of the association by it’s President, Thomas Adams joins with a number of other state captive associations and SIIA in making the request.
Concurrently with this effort, NCCIA and others are engaged in is a vigorous attempt to attach the provisions of 2016-66 to a regulatory rescission bill that is moving through congress and considered likely to pass with the support of the Trump administration. Webb commented that “The NC Captive Insurance Association representing a relatively young captive domicile has taken a leadership role in fighting this Notice on behalf of our members. This effort will continue.”
Sponsorship and Exhibitor opportunities for the NCCIA Annual ConferenceAugust 21-23 at the Ballantyne Hotel in Charlotte are now available for purchase on the association’s web site www.nccia.org
. Mike Meehan & Jesse Coyle co-chairs of this years event told the Newsletter that a number of sponsorships and exhibits were sold during the presales period for previous sponsors and exhibitors in the December/January time frame. Over 200 attendees are expected this year, building on the strong program presented at the 2016 conference.
According to the co-chairs “we will be releasing an expanded conference program, including sessions designed especially for captive owners in mid-March. Due to strong demand we have we have expanded the space available for exhibits and made several additional sponsorships available. It is our intention for this event to become a must attended event for the captive community. For questions or details contact Diane Waltman in the association headquarters.
NC House of Representatives Speaker Tim Moore (R-Shelby) attended a special update on activity in the NC captive market in the legislative building in mid January. The program was arranged by NCCIA for Commissioner Mike Causey who spoke at the meeting. The impact of the captive program was presented by Debbie Walker, deputy commissioner for captives in NCDOI. The Speaker told the crowd that the legislative leadership was “most pleased” with the growth of captives in the state. According to speaker Moore development of this sector is of “major interest” to the legislature.