In outgoing Governor Mark Sanford’s recent cabinet meeting, Department of Insurance Director Scott Richardson reported that, during Sanford’s years in office, the insurance industry in South Carolina has experienced a period of significant growth because the state government provided a climate that allowed the free market system to work.
Richardson points out that over 1600 insurance companies are licensed to operate in South Carolina, which includes some that are homegrown and others that operate both nationally and overseas.
Richardson says South Carolina is one of the top states in the country for insurance captives. A captive insurance company is an insurance company that primarily insures the risks of businesses which are related to it through common ownership. Farm Bureau Insurance Company is an example. Some captive insurance companies also insure risks of the groups’ customers as well.
Richardson lauded the department’s efforts to create the South Carolina Safe Home Program, which helps residents reinforce their homes against damage from a major storm.
Richardson says, in the area of private passenger automobile insurance, South Carolina has moved from the third or fourth worst in 2002, to third-best in percentage of uninsured.