Delaware has introduced a series of regulatory improvements, including its legislation on captives writing Side A directors and officers insurance (D&O), as well as captive capitalisation requirements.
Earlier this month, the Department issued Captive Bulletin 14 which outlined the Bureau of Captive & Financial Insurance Products’ requirements for captives which are formed to write Side A D&O coverage for Delaware corporations.
In March, Marsh Captive Solutions established a cell captive facility in Delaware, specifically designed for clients seeking alternative risk transfer options for Side A directors and officers insurance.
The Department also issued Captive Bulletin 12 which adopts a more flexible approach for captive applicants’ capitalisation requirements, including allowing use of brokerage accounts in certain circumstances.
Capital and surplus requirements have also been recalibrated to place more emphasis on consulting actuaries’ adverse case projections.
“As global leaders in captive insurance, we recognise that we must continue to explore improvement, innovation, and industry insight,” said Delaware’s Insurance Commissioner Trinidad Navarro.
“This industry is an important economic engine in our state, and I look forward to continuing to foster its expansion.”
A number of process changes are expected to improve approval application timelines, with reviews of initial application filings decreasing from a target of 45 days to 30 days.
Licensure applications peak towards the end of the year, and moving forward, applications received after 1 November will be reviewed within 80 days of submission.
Routine requests for approvals, such as dividends, business plan changes, statutory dormancy, and changes in approved service providers, will be reviewed within 10 days of receipt.
Captives will also now be able to seek contingent Bureau approval for actions requiring board approval or ratification.
“Delaware has been a top global captive domicile since revamping its captive insurance statute almost 18 years ago,” said Michael Teichman, Delaware Captive Insurance Association (DCIA) president.
“While we believe Delaware continues to have much to offer, we recognize 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 helpful and timely domicile improvements.”