MONTPELIER, Vt., Jan. 23, 2022 /PRNewswire-PRWeb/ -- Forty-five new captive insurance companies were licensed this year in Vermont, making 2021 Vermont's 4th highest year of growth in its 40-year history. Vermont is now home to 620 licensed captives, consisting of 589 active and 31 dormant captives.
"Vermont continues to be a global leader in the captive industry and has proven, once again, to deliver high-quality regulatory oversight and partnership that also meets the unique needs of captive businesses," said Governor Phil Scott.
Vermont's 52 sponsored cell captives currently host nearly 500 cells and separate accounts, in addition to the licensed captive companies. The new captives were licensed in 17 different industries, the main industries being healthcare, real estate, manufacturing, insurance, and transportation. At least 5 of Vermont's new captives in 2021 were formed by companies with international roots, —including Japan, Germany, Russia, the United Kingdom, and Australia.
"Not only are new captives forming at a rapid rate, but fewer captives have been dissolving this year than we typically see," said Brittany Nevins, Captive Insurance Economic Development Director. "We issued 45 new licenses, and only 14 captives were dissolved due to mergers, acquisitions, and other business reasons. This speaks to the strength of captive insurance as a long-term risk management tool and is something we expect to continue to see with the continuation of the hard insurance market."
Vermont has been experiencing growth in the number of new cells within sponsored captives, at a similar pace as new company licenses, with nine of the 45 new companies formed this year being sponsored cell companies.
"Vermont continues to see the growth in sponsored cell captives following consistent legislative updates over the recent years," said David Provost, Deputy Commissioner of Captive Insurance. "Many companies are realizing the opportunity and flexibility the cell structure provides for their company."
Throughout 2021, Vermont celebrated its 40th anniversary in the captive industry, which included a recognition of the key players that have made Vermont successful.
"Vermont has a robust captive infrastructure consisting of over 22 captive management firms, and a host of other skilled service providers," added Sandy Bigglestone, Director of Captive Insurance. "These experts right here in our state work closely with regulators to ensure the best outcomes for captives."
"It's been an incredible year of celebrating Vermont's rich 40-year history," said Rich Smith, President of the Vermont Captive Insurance Association (VCIA). "The growth this year speaks to the expertise of Vermont's regulators and industry service providers, the consistency of support for captives in the legislature, and the ability of all involved to adapt to the fast-changing needs of the industry during these volatile times."
Vermont has licensed a total of 1,242 captive insurance companies since 1981 and remains, by far, the largest U.S. domicile for captive insurance and third largest in the world. Vermont was named "Domicile of the Year" for a record 8th time by industry publication, Captive Review. With an active pipeline of prospective new captive insurance companies already underway for 2022, the state expects continued growth in the coming year.
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 1960s 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.
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SOURCE Vermont Captive Insurance
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