North Carolina Insurance Industry – Governance, Risk and Compliance

The North Carolina insurance industry research report provides a detailed analysis of the insurance regulations for life, property, motor, liability, personal accident, and health, and marine, aviation, and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. It also gives insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation, and legal system in the country. Moreover, it includes the scope of non-admitted insurance in the country.

North Carolina Insurance Industry Dynamics

The North Carolina Department of Insurance (DOI) is entrusted with the task of supervision of the North Carolinian insurance industry and is instrumental in ensuring the stability and efficient functioning of insurance and reinsurance companies. It functions in accordance with the guidelines stipulated in the North Carolina General Statues.

Some of the primary responsibilities of the DOI include protecting the consumers or holders of insurance contracts, licensing companies involved in insurance business, appointing, or revoking an authorized auditor for any insurance company, and maintaining the submission of the annual financial planning and statement of insurance companies operating in the state.

North Carolina Insurance Industry Segmentation by License Types

The key types of licenses issued in the North Carolina insurance industry are life insurance, non-life insurance, composite insurance, and reciprocal insurance.

Life Insurance: Insurers with a life insurance license can underwrite and sell insurance contracts related to risks like life policies and annuities.

Non-life Insurance: Non-life insurers can obtain a license for classes such as accident & health insurance, fire insurance, loss & damages to property, motor insurance (hull and liability), aviation insurance (hull and liability), marine insurance (hull and liability), water spill & damage insurance, glass insurance, workers’ compensation & employers’ liability insurance, personal injury liability insurance, boiler & machinery, and burglary & theft insurance.

Composite Insurance:  Composite insurance is not permitted in the US. However, insurers operating general insurance and those operating life insurance can belong to the same parent group.

Reciprocal Insurance: Article 15 (30) states that a reciprocal insurer must not engage in any insurance transaction in North Carolina until it has obtained a license to do so in accordance with the law.

North Carolina Insurance Industry Segmentation by Key Bodies

The key bodies that oversee the North Carolina insurance industry are the International Association of Insurance Supervisors (IAIS), National Association of Insurance Commissioners (NAIC), Federal Insurance Office (FIO), American Insurance Association (AIA), National Association of Mutual Insurance Companies (NAMIC), Property Casualty Insurers of America (PCI), Reinsurance Association of America (RAA), North Carolina Captive Insurance Association (NCCIA), and North Carolina Surplus Lines Association (NCSLA).

International Association of Insurance Supervisors: The IAIS is a membership-driven global organization that represents insurance regulators and supervisors. It formulates and issues various global insurance principles, standards, and guidance, provides training and support on issues related to insurance supervision, and organizes meetings and seminars for insurance supervisors. The IAIS works closely with other financial sector standard-setting bodies and international organizations to promote financial stability.

National Association of Mutual Insurance Companies: The NAMIC is a property and casualty insurance trade association representing mutual insurance companies in the US and Canada. In addition to mutual insurers, NAMIC members include stock insurance companies, reinsurance companies and industry vendor companies. The NAMIC’s objective is to provide leadership in advocacy, public policy, public affairs, and member support services.

North Carolina Captive Insurance Association (NCCIA): The NCCIA promotes the sound development of captive insurance business in North Carolina. NCCIA supports and represents member companies in front of the concerned authorities. It promotes and provides leadership, education, and information-sharing mechanism among members so that it can support and develop the captive insurance industry in North Carolina.

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North Carolina Insurance Industry Report Overview

Scope 

• Details of the insurance regulatory framework in North Carolina
• Details of the rules and regulations governing insurance products and insurance entities
• Lists and analysis of key trends and developments pertaining to the country’s insurance regulatory framework
• Analysis of the rules and regulations pertaining to the establishment and operation of insurance businesses in the country
• Details of the taxation imposed on insurance products and insurance companies

Key Highlights

• The North Carolinian insurance industry is regulated by the DOI.

• Composite insurance is not permitted in North Carolina.

• 100% FDI is permitted in the North Carolinian insurance industry.

• Non-admitted insurance is not permitted in the North Carolinian insurance industry. However, there are exceptions to this rule as described in the non-admitted section of this report.

• Key classes of compulsory insurance include motor third-party liability insurance and health insurance.

Reasons to Buy

• Provides FAQ-style analytical insights comprising 129 knowledge elements on insurance compliance applicable to the country.
• Gain insights into the insurance regulatory framework in North Carolina.
• Track the latest regulatory changes and expected changes impacting the North Carolina n insurance industry.
• Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
• Understand key regulations and market practices pertaining to various types of insurance products.