Once Again, Delaware Sees Tremendous Captive Growth

Delaware, a major captive domicile, once again saw tremendous growth in the formation of new captive insurance companies.

In 2023, 43 captives were licensed, boosting the total number of captive insurance companies to 670, including series captives.

"We are continuing the growth of the last couple of years. We are flexible and have innovative laws and regulations," said Stephen Taylor, director of Delaware's Department of Insurance's Bureau of Captive and Financial Insurance Products in Wilmington. He added that "we expect more growth to come."

Experts note that Delaware has many attractions, including a modest captive premium tax. Direct written premiums are assessed a flat 0.2 percent tax, while a flat 0.1 percent tax is assessed on reinsurance premiums.