S.C. Insurance Department Proposes Captive Company Standards

S.C. Department of Insurance Director Scott Richardson has proposed a Bulletin establishing clear standards for captive management companies in South Carolina including specific requirements for character, reputation, financial responsibility and insurance experience.

“For years there has been discussion over standards of regulation for captive insurance companies,” Richardson said. “Clearly, the success of captives starts with maintaining the highest standards for captive management companies. With this bulletin there can be no doubt about what we expect from captive management in South Carolina.”

As the number of U.S. domiciles continues to grow, South Carolina regulators hope that their high standards will become accepted industry practice.

Currently anyone wishing to manage captive insurance companies in South Carolina must submit a “Notification to the Director” and meet with captive regulators, who then determine their qualifications to submit applications and manage insurance transactions on behalf of licensed companies.

“In every successful domicile, managers are the regulator’s most valuable asset. South Carolina has been fortunate to have a number of very capable management firms. These standards will support our reputation among the world’s best locations for insurance and financial services,” stated Director Richardson.

Managers will have 30 days to comment. Upon signature of the Director, the standards will be obligatory for all existing managers and future management companies.

Source: South Carolina Department of Insurance

Topics South Carolina