South Carolina has passed Senate Bill 210 (S.210), a major update to its captive insurance laws. It now awaits the Governor's signature.
The bill introduces key reforms aimed at enhancing the competitiveness and regulatory agility of the state’s captive insurance framework.
Among the most significant changes is the formal recognition of foreign captive insurance companies, with new definitions and provisions designed to enable these entities to operate more seamlessly within South Carolina.
The legislation also expands the discretion of the director of the Department of Insurance in determining capital requirements, streamlining compliance obligations for captive insurers.
One notable amendment allows sponsored captive insurance companies to file a single actuarial opinion covering both the core company and its protected cells. This move is expected to reduce administrative burdens and support the growth of cell structures.
In response to increasing demand for international flexibility, S.210 permits transactions in specified foreign currencies, subject to regulatory approval, marking a step forward in aligning South Carolina’s captive regime with global market practices.
Additionally, the bill raises the portion of premium tax revenue allocated to the Captive Insurance Regulatory and Supervision Fund (CIRSF) from 20 per cent to 40 per cent.
This funding boost aims to strengthen regulatory oversight and support the continued expansion of the state’s US$1 billion captive insurance sector.
The South Carolina Captive Insurance Association (SCCIA) welcomes the legislative progress, stating the bill would “bolster a robust regulatory environment to promote the responsible growth” of the industry.
