W.R. Berkley Corporation has formed Oak Harbor Reinsurance Co. (Oak Harbor Re), a protected cell captive insurance company, which was licensed by the N.C. Department of Insurance on Nov. 25.
According to the North Carolina Department of Insurance, Oak Harbor Re will provide an onshore captive alternative for the group medical stop loss program of Berkley Accident and Health, a Berkley company.
Captive insurance is a form of self-insurance in which an insurance company is formed to manage the risks of its owners and/or affiliates.
W.R. Berkley Corporation is a global Fortune 500 company whose insurance company subsidiaries are rated A+ by AM Best. Berkley Accident and Health specializes in the accident and health insurance industry.
Oak Harbor Re has engaged captive management firm Strategic Risk Solutions, which is a captive manager approved by NCDOI, to manage captive insurers licensed in the state. Strategic Risk Solutions, which has an office located in Charlotte, manages captive insurer programs in numerous U.S. and international domiciles.
North Carolina’s captive-enabling legislation went into effect in October 2013. NCDOI said North Carolina has since established itself as a leading captive insurance domicile due to its “modern captive insurance legislative framework, low regulatory cost of the formation and operation of captive insurance companies, its active North Carolina Captive Insurance Association whose membership is comprised of captive insurance professionals and captive insurer owners, and its N.C. Department of Insurance regulatory team, which employs reasonable, appropriate regulation with a customer service oriented approach.”
Captive insurers create jobs and revenues for service providers such as captive managers, attorneys, actuaries, auditors, and other insurance professionals that perform services for the captive insurer, and they generate premium tax revenues for the state or jurisdiction in which they are established.
Source: North Carolina Department of Insurance
Topics Carriers Legislation North Carolina
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