In 2018, Delaware licensed 46 newly formed captive insurers despite a challenging environment, according to Delaware Insurance Commissioner Trinidad Navarro in a press release issued by the Delaware Insurance Department.
“Captive insurance formations faced a number of challenges in 2018, due to recent changes in tax law,” Navarro stated in the release. “Despite the headwinds, Delaware’s having knowledgeable captive regulators continues to attract quality applicants.”
Navarro added in the release that Delaware is the fifth largest captive domicile in the world, and the third largest in the U.S. The state is one of four captive insurance domiciles that is ICCIE (International Center for Captive Insurance Education) trained, and 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,” Navarro said in the release.
Navarro attributes 2018’s success to the newly enacted conditional licensing legislation 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. This is only available to certain captive managers who satisfy specific standards set by the Department of Insurance. If approved captive managers need a captive insurance license by a certain date, they are encouraged to seek a conditional license.
Source: Delaware Insurance Department
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