Captives reduce taxpayer burden

Insurance Commissioner Trinidad Navarro announced data showing a strong year of captive insurance formations in Delaware, with 56 licenses provided in 2019, outpacing previous years. “The success of Delaware’s captive insurance program is reflective of the hard work of Delaware’s captive staff in applying firm but fair regulations and finding innovative ways to improve client experience,” said Commissioner Navarro.

Of the 56 licensees last year, 52 licenses were issued conditionally. Conditional licenses are an innovative form of licensing offered by the state since 2018. This cutting-edge form of licensing allows certain captive owners to obtain a license on the same day as applying.

“When I assumed office, I recognized the necessity to streamline a number of our processes. Creating the conditional license has helped make Delaware one of the most attractive domiciles for captive insurance,” explained Commissioner Navarro, “By bringing in these companies, we have been able to generate a substantial surplus revenue that reduces taxpayer burden and strengthens our economy.”

In 2019, Delaware’s robust captive insurance program contributed $3 million to the state’s General Fund and $1 million to the City of Wilmington. The dollars contributed to the General Fund reduce the tax burden for every woman, man, and child in the state by $3.10. Wilmington residents’ tax burden is reduced by $17.22 total per person – a family of four in Wilmington saves $68.88 per year because of this program. Since Fiscal Year 2014, the program generated $20.7 million in surplus revenue. A 2016 study conducted by University of Delaware found that the captive insurance program contributes $359 million annually to Delaware’s economy.

The success of the Captive division continues to earn international recognition. In 2019, Delaware was named a finalist for Non-Asian Domicile of the Year by leading industry magazine Captive Review. Steve Kinion, Captive Insurance Director, was again named to Captive Review’s global Power 50 rankings as one of the top 10 most influential international captive leaders.

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.

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September 3, 2019

Delaware is a finalist for non-Asian domicile of the year.  Captive Review magazine released the shortlists for the 2019 Asia Captive Awards for both captive insurance domiciles in Asia and non-Asian domiciles having a significant presence on the continent.

“The Delaware Insurance Department has one of the highest international profiles of any U.S. state,” said Insurance Commissioner Trinidad Navarro.  “We participate in a number of international supervisory colleges and work with insurance regulators in Asian countries like Japan and Singapore.  Its captive insurance director, Steve Kinion, is the only U.S. captive domicile regulator who has not only met with, but also taught classes about the U.S. insurance regulatory system, for the staff at the China Insurance Regulatory Commission.”

Delaware is the world’s fifth largest captive insurance domicile and the third largest in the U.S.

Of the four finalists for the non-Asian domicile of the year, only Delaware is recognized by the International Center for Captive Insurance Education as an ICCIE Trained Organization.  This recognition reflects Delaware’s commitment to developing a professional captive insurance staff by having 80 percent of its financial analysts hold the Associate in Captive Insurance (ACI) designation. 

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The Delaware Department of Insurance protects Delawareans through regulation and education while providing oversight of the insurance industry to best serve the public.

Contact:         Vince Ryan

Sr. Advisor to the Commissioner

Vince.ryan@delaware.gov

Office: 302.674.7303

Dover, DE –  For the eighth year in a row, Delaware’s captive insurance director, Steve Kinion, has been named to Captive Review’s Power 50.  The Power 50 represents the fifty most powerful and influential individuals in today’s global captive insurance industry.  Over 3,000 insurance professionals worldwide cast their votes to select the Power 50.  Since 2014, Steve has been ranked in the top ten of the Power 50 lists and for 2018 he ranks as the 9^th most influential person in global captive insurance.

Insurance Commissioner Trinidad Navarro offered congratulatory words, “Steve is a captive insurance expert and professional.  His continuous selection for the Power 50 reflects the strength of the Delaware captive insurance domicile.”

Steve Kinion said, “I am honored that my peers selected me to be on the Power 50 list.  While this selection is an individual recognition, this acknowledgment belongs to the members of Delaware’s captive staff.  Without their hard work, I would not have been selected.”

In terms of the number of captives domiciled, Delaware is the world’s fifth largest captive domicile and the nation’s third largest.  It is the second largest U.S. domicile when measured by captive insurance premium.  The fact that the Delaware Insurance Department is an ICCIE Trained organization reflects that its experienced captive insurance team has reviewed and licensed some the world’s most complex and innovative captive insurance transactions.

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The Delaware Department of Insurance protects Delawareans through regulation and education while providing oversight of the insurance industry to best serve the public.

Contact: Vince Ryan

Office: (302) 674-7303

Email: vince.ryan@state.de.us

Delaware Department of Insurance

http://www.insurance.delaware.gov

Dover Office: 302-674-7300

Consumer Services Division: 1-800-282-8611

DOVER, DE—Insurance Commissioner Trinidad Navarro today announced the formation of 46 captive insurers in Delaware in 2018. Commissioner Navarro stated, “Captive insurance formations faced a number of challenges in 2018, due to recent changes in tax law. Despite the headwinds, Delaware’s having knowledgeable captive regulators continues to attract quality applicants. Delaware is the fifth largest captive domicile in the world, and 3rd largest in the U.S. It is only one of four captive insurance domiciles that is ICCIE (International Center for Captive Insurance Education) trained. Its captive insurers generate more than $12.5 billion of annual captive insurance premium.

We are committed to licensing captive insurers with sound business plans formed by reputable individuals. I thank my captive team for its hard work to make Delaware a leading captive domicile.” Commissioner Navarro attributes 2018’s success to the newly enacted conditional licensing legislation. Delaware is the first state in the nation allowing electronic filing of a conditional license. It permits the issuance of a conditional license to a captive insurance applicant on the same day as the application submission. Of the 46 licenses issued, in Delaware, 30 were conditional licenses. It allows speed to market for issuing a license, while at the same time maintaining regulatory integrity and safety. It is only available to certain captive managers who satisfy specific standards set by the Department of Insurance. If an approved captive manager needs a captive insurance license by a certain date, then they are encouraged to seek a conditional license.

Commissioner Navarro went on to say, “Besides recognizing the efforts of my captive director Steve Kinion and our captive team, I also thank the members of the Delaware General Assembly who unanimously voted for the conditional license legislation, Governor Carney for signing it, as well as the Delaware Captive Insurance Association for their support.”

Delaware is a leading captive domicile, ranking 3rd in the nation, and 5th in the world. It is only one of four captive insurance domiciles that is ICCIE (International Center for Captive Insurance Education) trained. Delaware domiciled captive insurers generate more than $12.5 billion of annual captive insurance premium. For more information about Delaware’s Captive Insurance program, please see captive.delaware.gov, or call our Captive office in Wilmington Delaware at 302-577-5280.
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Contact: Vince Ryan
Office: (302) 674-7303
Email: vince.ryan@delaware.gov

Delaware Department of Insurance

Dover Office: 302-674-7300
Consumer Services Division: 1-800-282-8611

UD Report: Captive Insurance Program Boosts Delaware’s GDP, Jobs, Incomes, Tax Revenue

Commissioner Stewart Celebrates Captive Bureau’s Economic Impact

DOVER, DE –Insurance Commissioner Karen Weldin Stewart today announced the release of a University of Delaware economic impact study which shows that the Department of Insurance’s captive insurance program contributes nearly $360 million to Delaware’s annual gross domestic product. The captive program also directly and indirectly supports 2,537 Delaware jobs, creates almost $109 million in additional income, and generates over $5 million for the state in tax revenue, the report shows.

The study, The Economic Contributions of the Captive Insurance Industry to the Delaware Economy, was conducted on behalf of the DOI by the University of Delaware’s Alfred Lerner College of Business & Economics’ Center for Applied Business & Economic Research (CABER), which has produced similar economic impact studies for the Firefly Music Festival and Delaware’s horseracing industry.

CABER surveyed 1081captive insurance companies doing business in Delaware and used data from businesses providing services to those companies. The report breaks out the program’s economic impact per $1,000 spent by the DOI for the captive industry. For every $1,000 spent, 1.95 jobs are created, $83,574 in income is generated, and $4,301 in taxes are collected. Captive program spending supports 950 jobs in finance and investment industry, 447 jobs in legal, accounting and professional support, and 209 retail jobs. The complete report may be found at http://captive.delawareinsurance.gov/docs/pdfs/captive-industry-impact-on-de-econ-caber-report-201608.pdf

“I instituted the Bureau of Captive and Financial Insurance Products in 2009 and I’ve watched it grow ever since,” said Commissioner Stewart. “Thanks to my captive director, Steve Kinion, and my topnotch captive staff, we are consistently one of the top captive domiciles in the US and in the world. But until now, I don’t think many people were aware of exactly what we contribute to Delaware’s economy. The CABER report rewards my faith in captives as a revenue generator for our state.”

Captive insurance entities are owned by the companies that they insure, and are generally formed by businesses who wish to better manage the cost and administration of their insurance coverage. DOI’s captive bureau is self-sustaining and currently contributes an annual surplus in tax and fee revenue of over $3 million to the Delaware general fund.

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For more information please contact Jerry Grant at 302-577-5259
captive.delawareinsurance.gov
www.delawareinsurance.gov