Process and regulatory changes developed in partnership with the Delaware Captive Insurance Association

Insurance Commissioner Trinidad Navarro and the Delaware Captive Insurance Association (DCIA) are proud to announce a series of process and regulatory improvements intended to ensure Delaware remains a top domicile for businesses seeking to form captive insurance companies. The news was shared at DCIA’s Fall Forum last week, the premier event for industry leaders.

“As global leaders in captive insurance, we recognize that we must continue to explore improvement, innovation, and industry insight,” said Insurance Commissioner Trinidad Navarro. “This industry is an important economic engine in our state, and I look forward to continuing to foster its expansion.”

After robust stakeholder engagement, the department issued Captive Bulletin No. 14, which outlines the Bureau of Captive & Financial Insurance Products’ requirements for captives formed to write corporate “Side A” directors’ and officers’ (D&O) coverage for Delaware corporations. This progress was made possible by the passage of SB 203 (2022). It is expected that this will help companies access more affordable coverage and increase Side A D&O capacity.

The department also issued revised Captive Bulletin No. 12, adopting a more flexible approach for certain captive applicant’s capitalization requirements, including allowing use of brokerage accounts in certain circumstances. Additionally capital and surplus requirements have been recalibrated to place more emphasis on consulting actuaries’ adverse case projections.

Several process changes are anticipated to improve approval timelines and speed to market. Unless otherwise noticed, review of initial application filings will decrease from a goal of 45 days to 30 days. Conditional licensure applications typically see a significant spike toward the end of the year. Moving forward, those applications received after November 1 each year will be reviewed within 80 days of submission. All routine requests for approvals, such as dividends, business plan changes, statutory dormancy, and changes in approved service providers, will now be reviewed within ten days of receipt. Additionally, captives will now be able to seek contingent Bureau approval for actions requiring Board approval or ratification.

Michael Teichman, President of the Delaware Captive Insurance Association, said “Delaware has been a top global captive domicile since revamping its captive insurance statute almost 18 years ago. While we believe Delaware continues to have much to offer, we recognize other domiciles are not standing still, and we cannot rest on our laurels. Over the past year we have enjoyed the opportunity to work with Commissioner Navarro and Bureau Director Stephen Taylor to develop these helpful and timely domicile improvements.”

Captive insurance companies are owned by the entities that they insure and are usually formed by businesses to better manage the cost and administration of their insurance coverage. Delaware is the world’s fifth largest and the third largest U.S. captive domicile. It is one of four global domiciles recognized by the International Center for Captive Insurance Education as ICCIE Trained. To learn more, visit captive.delaware.gov.

The Delaware Captive Insurance Association is a Delaware non-stock not-for-profit corporation formed in 2005 to serve as the unified voice of the captive insurance industry in Delaware and to support the development and growth of the industry through marketing, networking, education, and legislative initiatives.

The Delaware Department of Insurance today announced that industry veteran Stephen Taylor has joined the department as the incoming Director of its world-renowned Captive Bureau. Taylor will succeed Steve Kinion, who transitions out of the role on September 30.

“Stephen Taylor’s extensive experience as an innovative yet meticulous insurance regulator stood out amongst contract applicants for our Captive Director position, and we are happy to welcome him to the department,” said Insurance Commissioner Trinidad Navarro. “This role is certainly not without its challenges, but Taylor’s adeptness at engaging in both federal and nonfederal policy matters will serve our state well in the years to come.”

Stephen Taylor served as Insurance Commissioner of the District of Columbia from 2015 to 2020. In that role, he instituted a number of innovative insurance regulation reforms and prioritized initiatives that aimed to empower residents and increase economic inclusion. Taylor has held numerous prominent leadership roles in the National Association of Insurance Commissioners. He most recently served as Director of Policy and Assistant General Counsel to the Surety and Fidelity Association of America, and has nearly 30 years of insurance regulation, legislative, and legal experience.

“I look forward to working with the Commissioner and the talented Captive team to continue providing a best-in-class captive program for the risk management community and bringing important economic opportunities to the State of Delaware,” said Stephen Taylor.

Captive insurance companies, which are owned by the entities that they insure, are usually formed by businesses that wish to better manage the cost and administration of their insurance coverage. Delaware is the world’s fifth largest and the third largest U.S. captive domicile. It is one of four domiciles in the world recognized by the International Center for Captive Insurance Education as ICCIE Trained. To learn more, visit captive.delaware.gov.

Delaware Nominated as Non-European Union Domicile of the Year

The World’s Fifth Largest Captive Insurance Domicile Continues its Leadership Role

DOVER, DE – Insurance Commissioner Karen Weldin Stewart announced today that Delaware’s captive insurance bureau was nominated as the non-EU domicile of the year for the European Captive Service Awards.  The awards commend and reward those who have outperformed their competitors and peers and demonstrated the highest levels of excellence in the captive insurance industry over a 12 month period. The awards ceremony will be held in Luxembourg on Monday, November 7, just prior to the start of the European Captive Forum.

“One reason for Delaware’s nomination is that it has the most multi-lingual captive staff in the United States.  Our staff includes French, German, Lithuanian, Polish, Russian, and Spanish speakers. Our ability to be multi-lingual means that we can communicate in a global environment,” said Commissioner Stewart. Delaware also allows captive insurers to present their financial statements on an International Financial Reporting Standards (IFRS) basis.  Approximately 120 nations and reporting jurisdictions permit or require IFRS for domestic listed companies. When a foreign (non-US) firm creates a captive in Delaware, it can use IFRS as its accounting standard. This allows the firm to accomplish two important tasks.  First, it can present the captive’s financial statements using the same accounting standard as the home country parent and affiliated companies. Second, it allows a captive’s parent to use a single company-wide accounting language. This avoids the expense of converting the Delaware domiciled captive’s financial statements from a US accounting standard to IFRS.

“I am very pleased that the captive program continues to attain global recognition.  This program brings the world to Delaware by providing economic growth opportunities for the First State” said Commissioner Stewart.

Along with Delaware, the other nominees are Bermuda, Cayman, Guernsey, and Vermont.

For more information about the Department’s Bureau of Captive & Financial Insurance Products, visit http://captive.delawareinsurance.gov/  or call 302.577.5281.

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For more information: Jerry Grant 302-674-7303

For Immediate Release | Contact: Jerry Grant | Phone: 302-674-7303

Delaware Reports Another Record Year for Captive Growth

The World’s Sixth Largest, and the Third Largest U.S. Domicile, Continues its Leadership Role

DOVER, DE (February 12, 2015) – Insurance Commissioner Karen Weldin Stewart announced today that the captive insurance bureau she formed shortly after taking office in 2009 continues to exceed expectations.  “I am very pleased that the captive program continues to grow.  This program provides economic opportunities for my constituents and much needed revenue for the state.”

The Commissioner’s captive bureau reported that in 2014 it licensed 87 captive insurers and 141 series business units.  Since inception, the captive program has licensed 385 captive insurers, 753 series business units, and 13 cells.  Today the program boasts 333 active captive insurers, 688 active series business units, and 12 active cells.

Commissioner Stewart added, “I am gratified by our continued success and I look forward to expanding our program even more in 2015.”

Captive insurance companies are owned by the entities that they insure, and are formed by businesses who wish to better manage the cost and administration of their own risk. Today Delaware is the world’s sixth largest and the country’s third largest captive domicile.  Delaware’s sophisticated corporate laws, financial infrastructure and respected judiciary make it the preeminent jurisdiction for business. These benefits are extended to captive insurance companies through Delaware’s Bureau of Captive and Financial Insurance Products.

To learn more about Delaware’s captive insurance bureau please visit http://captive.delawareinsurance.gov/

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