It is my distinct pleasure to welcome you to our first Delaware’s captive business report. Permit me also to thank the contributors and sponsors of this magazine.
The old saying has it that from a tiny acorn can grow a mighty oak tree.
Delaware’s captive industry has grown from very modest beginnings into one of the preeminent leaders in the captive world. The establishment of Delaware’s Captive Bureau took place in 2009, in the midst of the global financial crisis. The period following the crisis was marked by increasing competition in the captive industry among domestic and international domiciles. Our Delaware captive industry’s growth in that time- through the efforts of stakeholders, private industry groups like the Delaware Captive Insurance Association, and engaged public officials- has exceeded all expectations.
The State of Delaware has been a leader as a place to incorporate since the early 1900s. There are a variety of reasons for the source of Delaware’s prestige as a “place where business gets done”: Delaware’s corporation laws, courts, and pragmatic state government are some of the elements contributing to Delaware’s special appeal for business entities. The existence of this corporate chassis has enabled Delaware’s General Assembly to construct a framework of captive-friendly legislation upon it.
Today, the captive insurance business is one of Delaware’s fastest growing financial industries. Delaware is the third largest domicile (out of thirty eight) in the country. The Department of Insurance is in the process of having an assessment done on the full economic impact of the captive industry upon Delaware’s economy. We have contracted with the CABER institute (Center for Applied Business Economic Research) at the University of Delaware to conduct this study. The ongoing successful growth of the Delaware captive insurance industry has created jobs, brought in revenue from premium and registration fees, created Delaware bank-managed assets, and has been a boon to other professional service providers.
I want to thank the Department of Insurance staff for their hard work, dedicated professionalism and collaborative efforts in making the captive Bureau such a success. The Bureau’s regulatory efforts have not gone unnoticed amongst their peers; it’s been recognized as recently as 2013 as the top domicile in the country. Our success in this endeavor helps maintain Delaware’s position as a “place where business gets done”.
Karen Weldin Stewart
Delaware Insuance Commissioner