NCCIA President Tom Adams Says "Keep Your Eye on" North Carolina Captives

Captive.com spoke with Tom Adams, president and CEO of the North Carolina Captive Insurance Association (NCCIA), to discuss the annual conference, scheduled for August 20–22 at the Sheraton, Le Méridien, in Charlotte, North Carolina. Captive.com readers can register online for this quickly approaching event.

North Carolina is one of the youngest US captive domiciles , enacting its captive insurance law in October 2013. The first North Carolina captive conference took place not long after in August 2014. Please share with Captive.com readers some details about the initial conference liftoff and how the conference has progressed.

You know, we had a great time at that first conference because everything was new. There was the new domicile and new staff at the commissioner's office, and new networking opportunities where we introduced North Carolina Pig Pickin' to a whole bunch of out-of-staters. It was also the first opportunity for those in the captive industry to meet one of the very few elected insurance commissioners in the country. Of course, all the programming was new, with the Captive 101 seminar selling out. The trick since then has been to build on that early success.

What are some of the current North Carolina captive industry facts, figures, and statistics that are the most impressive? 

In 2017, the captive industry had a $30 million impact on the North Carolina economy. Since 2014 and through 2017, the total economic impact has been $71 million in just 4 years, generating $2.5 million in premium tax revenue. Not many start-up industries put up those types of numbers.

In 2017, North Carolina was the fastest-growing captive domicile, licensing 66 new captive insurers. Concurrently, we lost 11 captives, resulting in a net gain of 55 captives, making North Carolina's total captive count 233 at year-end 2017. We had a similar experience with protected cells and series for a total net gain, after losing 11, of 56 new entities, ending the year with 404 active cells and series. Taken together, all of these numbers point to a robust captive industry in North Carolina.

We understand that much of the state's captive growth has been from small and medium-sized businesses, whose captives have an annual premium volume of $2 million or less. How does the NCCIA envision future captive growth in terms of types of captives and size of captives?

Actually, as you can see from the numbers above, our growth has been pretty spectacular across the captive spectrum. When you look at our state's corporate makeup, we have a sea of midsized businesses for which micro-captives are a wonderful alternative, while at the same time, enough large business has resulted in pure captive growth as well. Further, even though we are the 9th largest state by population, over 50 percent of our gross domestic product comes from agriculture, yet another fertile ground for captives.

In 2017, we had a number of captive insurer redomestications where large captives took advantage of North Carolina's favorable regulatory climate and our weather! So the short answer to your question is we see growth across the board. All are welcome.

The captive domicile landscape has recently become more and more competitive with North Carolina contributing to this trend. What will North Carolina do to remain a competitive and effective domicile moving forward? 

Keep your eye on the North Carolina General Assembly when it convenes in January. That's all I’m going to say for now.

Describe what makes the captive regulatory environment in North Carolina unique. 

Our regulators are not just competent, but they are also good people who put the captive customer first. I can't say enough positive things about Insurance Commissioner Mike Causey along with Senior Deputy Commissioner Debbie Walker and her staff. They are the ones who make North Carolina a "happening" domicile.

How did NCCIA approach putting together its 2018 conference schedule, and what are some of the highlights that make its offerings stand out from other captive events? 

This year, the conference planning committee asked NCCIA members what they wanted out of the conference and then built a program to meet those specifications. For example, we have a panel on cyber targeting that features an FBI special agent who works in this area. Another topic includes challenges to applying captive utilization for cannabis growers and sellers. There will also be a presentation on honor and duty from a former POW, Quincy Collins, who was jailed in the same cell for 2 years with US Senator John McCain, 2008 Republican nominee for president.

There will be new educational programming and new networking opportunities in a new hotel location at the Le Méridien in Uptown Charlotte. So come on down, y'all!

To get the most out of the conference, what suggestions do you have for new captive owner, risk manager, and insurance professional attendees?

For CPAs and attorneys, we are offering 10.5 hours of continuing education, which makes the conference a good buy for those individuals on a per-hour basis. Others should plan to take advantage of the exhibits and, most importantly, the time that is set aside for networking. That's a great opportunity to learn from each other in addition to what you learn from presenters.

What major outcomes does NCCIA want to see come from this year's conference?  

A more informed captive community that values the highest ethics and the continued growth of the industry in the "Old North State."

(Photo of Mr. Adams above is courtesy of the North Carolina Captive Insurance Association.)

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