Why has Delaware revised its captive insurance laws?
Delaware has consistently been at the forefront of business development and strives to maintain its reputation as a preeminent business jurisdiction. Captive insurance has become a sought after business discipline and, accordingly, members of the business community felt it was time to revisit Delaware’s captive insurance statute and to update the statute to make it more attractive and competitive with other jurisdictions. What is captive insurance? Captive Insurance is a risk management tool which allows businesses to more effectively and efficiently manage corporate risk. In addition, it offers a more efficient means to retain risk within the corporate structure. What type of company can benefit from captive insurance? Captive Insurance can suit a range of companies. Large corporate structures often benefit from creating a wholly-owned captive, or “pure captive” to insure risks germane to the organization’s business needs. Smaller companies can benefit from captive insurance planning
