Captive Insurance Defined Title 38, Chapter 90 of the South Carolina Code of Laws defines captive insurance companies and details the required regulations. Captives are an alternate type of self insurance vehicle that affords businesses some flexibility with their risk management strategies. There are different types of captives depending on the best strategy for a business or organization.
For example, there are association captives, captive reinsurance companies, industrial insured captives, pure captives, special purpose captives, special purpose financial captives, and sponsored captives.
South Carolina’s captive insurance securitization program is proud to be the premiere domicile for a financially expedient model in an increasingly efficient national insurance market. South Carolina’s captive insurance statutes were the first and most comprehensive legislation allowing captive securitization in the United States.
Securitization of the required excess reserves is the most efficient method to relieve insurers and reinsurers of an otherwise significant capital strain issue. South Carolina is the premier jurisdiction for high-quality regulatory oversight in sophisticated financial transactions using the captive platform.