A safety catheter insertion device configured to automatically retract a needle cannula following insertion of a catheter assembly and to inhibit release of the catheter assembly from the safety catheter insertion device until the needle cannula has been retracted for the purpose of inhibiting inadvertent needle sticks. The safety catheter insertion device including an advancement arm slidably coupled to a needle housing assembly and configured to shift between a first position in which a needle cannula traverses through a catheter hub coupling portion of the advancement arm to inhibit release of a catheter assembly, and a second position in which one or more tabs of the advancement arm interact with one or more retention arms of the needle housing assembly to enable a biasing mechanism to shift the needle assembly to a proximal position and enable release of the catheter assembly from the safety catheter insertion device.