Ms. Kitzman told National Underwriter last month that during the past five years, the captive division has focused primarily on licensing new companies and evaluating their business plans, but "now that we have 121 captives licensed, they require ongoing regulation," she said.

She continued that the department has not "really developed captive-specific procedures" for that purpose.

Ms. Kitzman said her department is adding resources to the state's captives program to build on its success during the last six years. In that period, South Carolina has become the third-largest domicile for captive insurers in the United States. "We intend to continue to be a preferred domicile for captives," she said.

Ms. Kitzman previously announced that Leslie Jones, who first joined the department in 1997 as a life actuary and currently manages the ARTS division, would be assuming a new role as executive assistant, consulting actuary to the department. The department is interviewing for a program manager to run the day-to-day operations of ARTS.

Gwendolyn Fuller McGriff will continue as general counsel and has become the department's deputy director for consumer services, agents licensing and education, and specialty lines. She previously was general counsel and deputy director for financial services and the property-casualty and life, accident and health sections.

The department said Ben Duncan has joined the agency as deputy director for administration and strategic planning, and will oversee the accounting, human resources and information technology divisions as well as the budget and strategic planning functions.

Ms. Kitzman is interviewing candidates for the position of deputy director for financial services and solvency, the department said.

In announcing her reorganization, Ms. Kitzman said she is focusing on having the department operate in an efficient and cost-effective manner. She noted that the department regulates a complex industry and "it is imperative that we have the technical expertise to do the job."

Ms. Kitzman was appointed to her post earlier this year by Gov. Mark Sanford, who announced last week that he was forming a Workers' Compensation Reform Task Force to review the state's comp system and recommend measures to control a spike in workers' comp insurance prices that rose 11.4 percent compared to an average national decrease of 6 percent.

The governor said he asked Ms. Kitzman and Department of Commerce Secretary Bob Faith to recommend a broad-based group of businessowners, physicians, insurance representatives and attorneys to examine the issue.

He said he was acting in response to a National Council on Compensation Insurance filing for a workers' comp premium increase of nearly 33 percent.

With 121 captives already licensed, the emphasis is shifting to developing specific, ongoing regulation.