Delaware Licenses 46 Captive Insurers in 2018
January 25, 2019
In Delaware in 2018, 46 captive insurers were formed according to a recent statement from the state's insurance commissioner, Trinidad Navarro.
Delaware is the fifth largest captive domicile in the world and the third largest in the United States. The state's captive insurers generate more than $12.5 billion of annual captive insurance premium.
The commissioner said recent tax law changes presented some challenges for Delaware captive insurer formations in 2018; however, quality applicants are drawn to the state due to its well-informed captive regulators. Delaware is only one of four captive insurance domiciles that are International Center for Captive Insurance Education trained.
Delaware is the first state to allow same-day conditional licensing to captive insurance applicants, and Commissioner Navarro points to the state's recently enacted conditional licensing legislation as the reason for its success in 2018.
Of the 46 licenses issued in Delaware, 30 were conditional licenses. Delaware said that conditional licensing allows speed to market for license issuance while maintaining regulatory integrity and safety. The option is only available to certain captive managers who satisfy specific standards set by the department. If an approved captive manager needs a captive insurance license by a certain date, the state encourages them to seek a conditional license.
January 25, 2019
