The Delaware Department of Insurance has revealed it licensed 56 captive insurance companies during 2019, up from 46 licenses in 2018.
Out of the 56 captive insurance companies licenses last year, 52 were issued conditionally. This has been an innovative form of licensing offered by the state since 2018, which allows certain captive owners to obtain a license on the same day as applying.
In 2019, Delaware’s captive insurance programme contributed $3 million to the state’s general fund and $1 million to the city of Wilmington. The dollars contributed to the general fund to reduce the tax burden for everyone 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 programme.
Since the fiscal year 2014, the programme generated $20.7 million in surplus revenue. A 2016 study conducted by the University of Delaware found that the captive insurance programme contributes $359 million annually to Delaware’s economy.
Insurance commissioner Trinidad Navarro said: “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.”
“When I assumed office, I recognised 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 Navarro.
He added: “By bringing in these companies, we have been able to generate a substantial surplus revenue that reduces taxpayer burden and strengthens our economy.”
