Delaware insurance commissioner Trinidad Navarro and the Delaware Captive Insurance Association (DCIA) have launched a series of process and regulatory improvements.
These improvements aim to ensure Delaware remains a “top domicile for businesses seeking to form captive insurance companies,” says the State.
Delaware is the world’s fifth largest and the third largest US captive domicile.
As part of the initiative, the department issued Captive Bulletin No. 14, which outlines the Bureau of Captive & Financial Insurance Products’ requirements for captives formed to write corporate “Side A” directors’ and officers’ (D&O) coverage for Delaware corporations.
This progress was made possible by the passage of SB 203 (2022). It is expected that this will help companies access more affordable coverage and increase Side A D&O capacity.
The department also issued revised Captive Bulletin No. 12, adopting a more flexible approach for certain captive applicant’s capitalisation requirements, including allowing use of brokerage accounts in certain circumstances.
Additionally, capital and surplus requirements have been reworked to place more emphasis on consulting actuaries’ adverse case projections.
Several process changes have been made, which are anticipated to improve approval timelines and speed to market.
The news was shared at DCIA’s Fall Forum last week.
Michael Teichman, president of the DCIA, comments: “Delaware has been a top global captive domicile since revamping its captive insurance statute almost 18 years ago. While we believe Delaware continues to have much to offer, we recognise other domiciles are not standing still, and we cannot rest on our laurels.
“Over the past year, we have enjoyed the opportunity to work with commissioner Navarro and bureau director Stephen Taylor to develop these domicile improvements.”
