Vermont has another record year of captive formation growth
MONTPELIER, Vt., Jan. 19, 2023 /PRNewswire-PRWeb/ -- The Vermont Department of Economic Development is hosting "Captive Insurance Day" today at the Statehouse to highlight the continued success of the captive insurance industry in the state after another banner year in 2022.
The State of Vermont licensed 41 new captive insurance companies in 2022. Vermont is now home to 639 licensed captives, consisting of 608 active and 31 dormant captives. Vermont's 59 sponsored cell captives currently host over 500 cells and separate accounts, in addition to the licensed captive companies. The growth in captive formations in 2022 is Vermont's 6th highest year of growth in its over 40-year history since passing captive-enabling legislation in 1981.
"Vermont has so much to offer, and the captive insurance industry remains a point of pride in our state," said Governor Phil Scott. "We look forward to once again improving our statutes this legislative session so we can continue to be a leading choice for companies in their captive insurance domicile selection."
"While we are happy to have another year of record growth, we never stop asking ourselves how we can be better," said Sandy Bigglestone, Deputy Commissioner of Captive Insurance, Department of Financial Regulation (DFR). "We are actively looking into how to improve our statutes and internal processes to be most efficient and useful for businesses and look forward to providing the best service to them in the year ahead."
The new captives were licensed in 17 different industries, the top three industries being healthcare (7), construction (5), and real estate (4). At least 4 of Vermont's new captives in 2022 were formed by companies with international roots, —including Canada (2), Mexico and Austria. Top formation types were pure (30), Sponsored (6), Agency (2) and Risk Retention Groups (2). Nearly 40 new cells were formed in 2022.
"Throughout the pandemic captive insurance has been a great tool for the health care industry," said Christine Brown, Director of Captive Insurance, DFR. "Hospitals and health care providers have had emerging risks and fewer available insurance options. Captive insurance has given them a way to have more control over that risk that's also financially sustainable."
The State of Vermont returned to pre-pandemic outreach with businesses in 2022 and the Vermont Captive Insurance Association (VCIA) held it's first in-person annual conference in Burlington since 2019. Attendance at the conference reached nearly 1,000 and 71 companies exhibited at the conference. 5 countries were represented at the conference.
"The captive industry has remained steady throughout the pandemic, and is thriving here in Vermont," said President of the VCIA, Kevin Mead. "The momentum is strong to keep developing this great industry. We continue to raise awareness about captive insurance around the world, and we look forward to expanding our efforts in the year ahead."
Vermont has licensed 5 new captives already in 2023 and has a total of 1288 captive insurance companies to date. Vermont remains, by far, the largest U.S. domicile for captive insurance and third largest in the world. With an active pipeline of prospective new captive insurance companies already underway, the state expects continued growth in the coming year.
"The captive industry brings in significant and increasing revenue to the state of Vermont and jobs for Vermonters year after year," said Brittany Nevins, Captive Insurance Economic Development Director, Department of Economic Development. "We are committed in 2023 to continuing our proactive and innovative work to remain a top domicile choice for captive insurance companies worldwide."
Vermont received multiple awards in 2022. Vermont was named once again "Domicile of the Year" for a record 9th time and for a second time "International Domicile of the Year" by captive publication Captive Review. Vermont was named "Domicile of the Year – Highly Commended" by Captive International. Deputy Commissioner Sandy Bigglestone was once again voted in the top 10 most influential professionals in the captive industry by Captive Review and Brittany Nevins was voted "One to Watch."
"Despite times of great transition in the world, the Captive Insurance Division in Vermont has continued to be a leader that companies can count on," said Department of Financial Regulation Commissioner Kevin Gaffney. "Our dedication to quality and efficient regulation of captive insurance companies has been unwavering through periods of change."
For more information on Vermont's captive insurance industry, visit http://www.vermontcaptive.com, call Brittany Nevins at 802-398-5192 or email [email protected].
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About Vermont Captive Insurance
Captive insurance is a regulated form of self-insurance that has existed since the 1960's and has been a part of the Vermont insurance industry since 1981, when Vermont passed the Special Insurer Act. Captive insurance companies are formed by companies or groups of companies as a form of alternative insurance to better manage their own risk. Captives are commonly used for corporate lines of insurance such as property, general liability, products liability, or professional liability.
Media Contact
Brittany Nevins, Vermont Department of Economic Development, 1 802-398-5192, [email protected]
SOURCE Vermont Department of Economic Development
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