Delaware Becomes Sixth Largest Captive Insurance Domicile

Insurance Commissioner Karen Weldin Stewart Announces Continued Growth In Delaware’s Captive Program

Dover, DE–Despite facing increased competition due to the growing number of captive insurance domiciles, Delaware grew its number of captive insurers in 2013. The year-end 2013 numbers are 298 licensed captives with 266 being active. As of year-end 2012, Delaware had licensed 212 captive insurers with 192 being active. Delaware experienced a 40 percent increase in licensed captives in 2013. Commissioner Stewart noted, “Delaware service providers, such as attorneys and accountants, are providing services to the captive industry at a greater rate than at any other time in the department’s history. This shows that the captive bureau is meeting, and even exceeding, its statutory mission of expanding economic development.”
According to Steve Kinion, director of the captive bureau, the growth resulted from industry’s recognition that Delaware is a premier captive domicile. Kinion stated, “In 2012 Delaware was the world’s 10th largest and 3rd largest U.S. domicile. While we remain the third largest U.S. domicile, our global reach and presence has significantly increased.” Commissioner Stewart added, “One of the attributes of domiciling in Delaware is that captive insurers can take advantage of Delaware’s premier entity laws. No other jurisdiction integrates business and corporate laws with alternative risk transfer like Delaware.”

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. In 2005, the Delaware General Assembly passed House Bill 218, modernizing Delaware law regarding the formation of captives and positioning Delaware to become a home to the growing number of captive insurance companies being created by companies worldwide. Delaware’s sophisticated corporate laws, judiciary and financial infrastructure make it the preeminent jurisdiction for business. These benefits are extended to captive insurance companies through the Delaware Captive Insurance Program.

For more information about Delaware’s captive insurance program visit
Delaware Department of Insurance: “Protecting Delawareans through regulation and education while providing oversight of the insurance industry to best serve the public.”

Delaware Insurance Commissioner Karen Weldin Stewart Announces Decision on DCRB Workers’ Compensation Rate Filing

Dover, DE-Delaware Insurance Commissioner Karen Weldin Stewart announces today that based on the agreement between the Delaware Department of Insurance, the Delaware Compensation Rating Bureau and the Ratepayer Advocate, she has approved the re-submission of the Delaware Compensation Rating Bureau (DCRB) workers’ compensation rate filing regarding the residual market rate and the voluntary market loss cost.

The annual filing was carefully reviewed and analyzed by the Delaware Insurance Department’s actuaries, as well as the Rate Payer Advocate’s actuary. The reports were posted on the Department’s website. The lower increases approved reflect a more appropriate balance in the cost of insurance premiums compared to the cost of the system. The Commissioner and the Rate Payer Advocate, along with their actuaries, concurred that the increases of 11.4% in residual market rates and 14% in voluntary market loss costs met the requirements in Delaware law that rates must not be inadequate, excessive, or unfairly discriminatory. The effective date of the increase is retroactive to December 1, 2013 for new and renewal business.

Commissioner Stewart stated “While three different actuaries have all concluded that an increase is indicated, I must weigh more than actuarial considerations in making my decision. The difficulties seen by Delaware employers as emphasized during the three public information sessions, the need for our economy to grow, and the rising costs faced by insurers must all be included in my final decision. This decision represents a savings of more than 45 million dollars to Delaware employers from the original submission. We encourage the DCRB and legislative leaders to continue to work toward a common goal of identifying and addressing the underlying cost drivers in Delaware’s workers’ compensation rates.” Stewart believes that continued momentum behind legislative reforms introduced in 2013 and those sought in 2014 to ensure that future rate requests are small will help to keep our economy strong and attract and retain businesses in Delaware. Stewart added “Unfortunately, a rate increase is necessary this year for worker’s compensation insurance in Delaware. My commitment to the consumer is unwavering; and I will continue to work with all parties to create further reform that we expect will result in a reduction in the overall cost drivers in the worker’s compensation system.”

For more information about the DCRB annual rate filings, visit the Delaware Department of Insurance website at

Please see attached statement from the Rate Payer Advocate.

Delaware Department of Insurance: “Protecting Delawareans through regulation and education while providing oversight of the insurance industry to best serve the public.”

Consumer Alert: Commissioner Stewart Provides Recommendations for Confirming New Health Insurance Coverage

Dover, DE – Complications within health insurance marketplaces have created challenges for some new enrollees who have not yet received proof of their insurance coverage. As a result, some consumers are unsure if their medical treatments are covered. If you recently purchased a plan, but still haven’t received proof of insurance from your insurance company, the National Association of Insurance Commissioners (NAIC) and the Delaware Department of Insurance have some tips for confirming coverage.

Since open enrollment began on October 1, insurance companies have encountered multiple problems that have prevented the companies from being able to enter new members into their systems. Some companies received incomplete or incorrect information from the insurance marketplaces. Other companies were overwhelmed with the number of applications they received and were unable to process them by the time the new plans went into effect. This delay in providing proof of coverage has many consumers worrying if they really have insurance and wondering what to do next.

Contact the Company
The first thing you should do is contact your insurance company to verify that you do have insurance coverage. Insurance Commissioner Karen Weldin Stewart stated, “The insurance company will be able to verify if you are indeed enrolled in a plan or not. Some people signed up for a plan but never paid the premium so be sure to discuss your payment. And, of course, ask your insurance company for proof of coverage, such as an insurance card or identification numbers. Many insurance companies have a website, which, after setting up your account, will allow you to print a temporary ID card.”

When you speak to your insurance company, take detailed notes of the conversation. Include the date and time that the conversation took place, and the name of the representative. Hold on to copies of any written communication you received from your insurance company such as emails or letters as you may need these materials later. You should also verify that you have paid your first premium on time. Some insurers have permitted late payments for coverage that is retroactively effective to January 1, 2014. Find out your insurer’s deadline and keep any records that can serve as proof of payment.

If you have yet to purchase coverage but are planning on buying insurance through the federal Health Insurance Marketplace,, print out any paperwork or confirmations that you receive during the enrollment process. If you do not have a printer save digital copies of forms or take “screenshots” of any confirmation numbers or account numbers. It never hurts to e-mail those digital forms to yourself so you can access them from anywhere or in case something happens to your computer.

Payment Options
You may need to get a prescription filled or see your doctor before you receive your insurance card. Your provider (hospital, doctor, pharmacy) may be able to verify your coverage by contacting your insurer directly. If verification of coverage cannot be obtained, you still have options. One option is to pay for expenses out of pocket. Once your insurance coverage is established, your insurance company should reimburse you to the extent that the service or medication is covered under your policy. You may also be able to work with your doctor’s office, hospital or pharmacy to delay payment or set up a payment plan until they can verify that you’re insured. Keep your receipts and any bank statements that show that you’ve paid for the services. It can sometimes be easier to track purchases made with a debit or credit card as opposed to cash.

More Information
If you have questions about your health insurance options visit for more info and links. You can also visit Delaware’s Health Insurance Marketplace, Individuals have until March 31, 2014 to enroll in a health insurance plan in order to meet the Affordable Care Act’s “individual mandate” without incurring a penalty, or fee, from the IRS. For more info about penalties and subsidies please visit


Contact: Marla Blunt-Carter
(302) 577-5259

Delaware Department of Insurance: “Protecting Delawareans through regulation and education while providing oversight of the insurance industry to best serve the public.”

Commissioner Karen Weldin Stewart Proudly Announces Delaware As U.S. Onshore Captive Domicile of the Year

DoverCaptive Review magazine has named the winners of the 2013 U.S. Captive Service Awards and Delaware has been recognized as the winner in the category of U.S. onshore captive domicile of the year. Captive Review says, “Steve Kinion has led an experienced and approachable team in establishing Delaware as one of the U.S.’s most well regulated domiciles. Updating their laws every year, the domicile have worked hard to stay innovative and competitive and the judges felt that Delaware stepped up to the plate even more than Vermont this year, which came a close second.”

Captive insurance is a form of self-insurance where a business owner forms their own insurance company to insure their own risk. Since the owner is insuring himself, captive insurance is an incentive to avoid behaviors that lead to insurance losses. By reducing losses, the business owner can invest dollars formerly used to pay claims back into the business to create jobs. In terms of jobs and economic opportunity, the captive program has exceeded expectations. Commissioner Stewart is proud of the Delaware Captive Bureau and the captive team at the Department of Insurance led by Captive Director, Steve Kinion.

Stewart stated, “In addition to providing economic growth for many professional service firms in Delaware, the Captive insurance bureau has generated revenue for the state during this very difficult financial time.” Stewart added, “I am proud of my team and I believe that Steve and the entire captive bureau have done an excellent job. I am grateful for their hard work and the growth of the captive insurance industry which means jobs, revenue, and wealth – and that’s good for Delaware.”

In a separate ranking by Captive Review, The Delaware Department of Insurance’s Director of the Bureau of Captive and Financial Insurance, Steve Kinion, was also named as one of the Annual “Power 50”, a list that recognizes the captive industry’s most proactive, influential and innovative figures in 2013. Described as being a highly professional regulator with a pragmatic understanding of the need for proportional regulation; Kinion has been instrumental in driving the growth of Delaware as a captive domicile. Last year Delaware experienced the best year for captive licenses the state has seen since its adoption of captive regulation in 1984, and is currently ranked as the world’s 10th largest captive domicile and 3rd largest U.S. captive domicile.


Contact: Marla Blunt-Carter
(302) 577-5259

Delaware Department of Insurance: “Protecting Delawareans through regulation and education while providing oversight of the insurance industry to best serve the public.”