Page 10 - Delaware Department of Insurance

Captive Division plays major role on international stage
Since FY2014, 882 captive insurance companies have provided Delaware with $20.7 million of net revenue, reducing the annual
tax burden statewide by about $21.41 for every man, woman, and child. The $1 million that the City of Wilmington receives from captive insurance companies each year saves a Wilmington family of four $68.88 per year, according to Department of Insurance figures.
Captive insurance companies, which are owned by the entities that they insure, are usually formed by businesses that
wish to better manage the cost and administration of their insurance coverage.
Captive insurance revenue
is out-of-state dollars coming
into Delaware and every dollar
of captive insurance revenue means that Delaware’s residents pay one less dollar in taxes. Fiscal year 2019, which ended on June 30, resulted in $3 million was transferred to the General Fund.
In 2005, the Delaware General Assembly passed House Bill
218, modernizing Delaware law regarding the formation of these companies 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. These benefits are extended to the companies through the Delaware Captive Insurance Program.
2019 data shows 56 new captive licenses, up slightly from 2018’s new license number of 46, A majority of new licenses are requested through the conditional licensing process, which is a tool created in recent years that increases efficiency
in the process.
Delaware’s Captive division celebrated continued success and
10 | Delaware Department of Insurance
Steve Kinion
recognition on the international stage in 2019, including
being named as a finalist
for Non-Asian Domicile of
the Year by leading industry magazine Captive Review.
“The Delaware Insurance Department has one of the highest international profiles of any U.S. state,” said Insurance Commissioner Trinidad Navarro. “We participate
in a number of international supervisory colleges and work with insurance regulators around the world. Steve Kinion is the only U.S. captive domicile regulator who has not only met with, but also taught classes about the U.S. insurance regulatory system, for the staff at the China Insurance Regulatory Commission.”
Of the four finalists for the non-Asian domicile of the year, only Delaware was recognized by the International Center for Captive Insurance Education as an ICCIE Trained Organization. This recognition reflects Delaware’s commitment to developing a professional captive insurance staff by having 80%
of its financial analysts hold the Associate in Captive Insurance (ACI) designation.
Captive Bureau Revenue & Expenses
FY2014 FY2015
FY2016
$2.1
FY2017
$2.5
FY2018
FY2019
$4.5
$4.6
$6.9
$7.1
$6.0
Revenue
$5.6 $2.5 $2.9
Expense $1.5 $2.0 *Dollars in millions
Captive Bureau: Transfers to General Fund & Wilmington
FY2017 FY2018
General Fund $3.0 Wilmington $1.0 $1.0 $1.0
*Dollars in millions
FY2019
$4.2
$2.0
For the fifth straight year, Captive Insurance Director Steve Kinion was named to Captive Review’s global Power 50 rankings, making his mark as the ninth most-powerful captive manager in the world.
Delaware maintains the world’s fifth-largest captive insurance domicile, and the third largest in the United States. The division is an International Center for Captive Insurance Education-trained organization, and 80% of the division’s financial analysts
hold the Associate in Captive Insurance designation.