Insurance commissioner Karen Weldin Stewart has announced continued growth in Delaware's captive program, despite increased competition due to the growing number of domiciles.
In 2013, Delaware experienced a 40 percent increase in licensed captives. At the end of 2012, there were 212 captive insurers in the region, 192 of which are active. At the end of 2013, there were 298 licensed captives with 266 being active.
Commissioner Stewart notes, "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 says, "In 2012 Delaware was the world's 10th largest and 3rd largest US domicile. While we remain the third largest US domicile, our global reach and presence has significantly increased."
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.
Commissioner Stewart adds, "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."
Delaware, captive, growth