Delaware licensed 70 captive insurance companies in 2020, with most of the new captives, as was the case in 2019, licensed under a fast-track procedure. Of the 70 new captives, 67 received fast-track conditional licenses, which allow captives to operate while Delaware captive regulators review their license applications.
Global natural disaster losses increased in 2020 from their 2019 level, a trend likely to continue in coming years, according to reinsurers and others tracking natural catastrophes. In a recent report, Munich Re pegged global losses from natural disasters in 2020 at $210 billion, of which $82 billion was insured.
A group of captive insurance industry associations has submitted comments to the US Treasury Department suggesting that limiting captive insurance companies' access to the Terrorism Risk Insurance Program would run counter to the intent of the Terrorism Risk Insurance Act.
The United States experienced a record 22 billion-dollar disasters in 2020, according to the National Oceanic and Atmospheric Administration (NOAA). The year’s disasters included a record number of tropical storms forming in the Atlantic, with a record 12 of those making landfall, according to NOAA.
Analysis of January 1 reinsurance renewals shows that, in general, buyers did not face price increases or changes to terms and conditions as extreme as many had anticipated. Abundant capital was among the forces moderating reinsurance markets at January 1 renewals.