Blog: Vermont sets another record year for captive formation growth in 2022 – Reinsurance News

The Vermont Department of Economic Development hosted its “Captive Insurance Day” event earlier this month to highlight the continued success of the captive insurance industry in the state after it saw another successful year in 2022.

growthThroughout 2022, the State of Vermont licensed 41 new captive insurance companies, which has resulted in Vermont now being 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 from last year is now Vermont’s 6th highest year of growth in its over 40-year history since passing captive-enabling legislation in 1981.

The new captives were licensed in 17 different industries, with the top three industries being healthcare (7), construction (5), and real estate (4).

Additionally, at least four of Vermont’s new captives in 2022 were formed by companies with international roots, which includes Canada, Mexico, and Austria.

“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.”

So far, Vermont has already licensed 5 new captives this year, and the state now has a total of 1288 captive insurance companies to date. Vermont remains, the largest US domicile for captive insurance and third largest in the world.

“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.”

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