South Carolina officials said they will propose standards for managers of captive insurance operations in the state including specific requirements for character, reputation, financial responsibility and insurance experience.
The Department of Insurance said in a statement that "Director Scott Richardson has proposed a bulletin establishing clear standards for captive management companies in South Carolina."
It was explained that the move is aimed at enhancing the state's reputation as "one of the fastest growing and most accessible and accommodating locations for the captive insurance industry in the U.S. and the world," and will lay the groundwork for future growth and success.
Mr. Richardson told National Underwriter in an e-mail that the bulletin has been sent to captive managers. He said variations on the bulletin "have been in the works for several years."
He added that the domicile, established eight years ago, now has "18 management groups who have notified the department that they wish to manage captives in South Carolina. So, we felt the time was right to revisit this topic and set down some concrete standards for character, reputation, financial responsibility and insurance experience so that everyone would know our expectations and would be playing by the same rules. We think that could be a good template for other domiciles to build upon."
The department said in a statement that the success of captives starts with maintaining the highest standards for captive management companies.
Currently anyone wishing to manage captive insurers in South Carolina must submit a "Notification to the Director" and meet with captive regulators. The regulators 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," Mr. Richardson said. "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."
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, the department said.
The South Carolina Captive Insurance Association lists the following captive managers in South Carolina: AIG Management Services, Inc.; Aon Insurance Managers; HSBC Insurance Management; Liberty Mutual Management; Marsh, Inc.; Meeting Street Management Company; Risk Services; Strategic Risk Solutions; USA Risk Group of South Carolina; W.A. Taft & Company; and Wilmington Trust SP Services.
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