Delaware’s captive insurance programme has contributed just shy of $360 million to the state’s GDP since it launched in 2009, according to an economic study by the University of Delaware.
The industry also directly and indirectly supports 2,537 jobs in Delaware, creates $109 million in additional income and generates $5.6 million in tax revenue.
The study was conducted on behalf of the Delaware Department of Insurance (DOI) by the university’s Alfred Lerner College of Business & Economics’ Center for Applied Business & Economic Research (CABER).
According to the report, for every $1,000 spent on the captive industry by the DOI, 1.5 jobs are created, $83,574 is generated in income and $4,301 is collected in taxes.
CABER studied 1,081 captive insurance companies doing business in Delaware, as well as data from businesses providing services to those companies.
Delaware insurance commissioner Karen Weldin Stewart commented: “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.”
