This new captive law complements the existing statutory structure that attracts industry to South Carolina.
Captives provide flexibly based alternate risk management strategies through self-insurance.
Reduced Insurance Costs - Captives may reduce insurance costs by charging a premium that reflects the parent's loss experience rather than that of a group. Better Cash Flow - Premiums and investment income are retained within the group. Further, captives may offer flexible premium payment plans. Risk Retention - A captive helps companies address concerns about inadequate discounts when assuming greater deductibles for the risks retained. Coverage - When the commercial insurance market is unable or unwilling to provide coverage for certain risks or where the price for coverage is too high, captives are an alternative means of providing such coverage.