Monday, February 26, 2024

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Consistent, well staffed regulators helps Vermont to top spot

The State of Vermont has cited its consistent high level of regulatory staffing, pro-active approach to captive regulation and expert local infrastructure as key reasons for becoming the number one domicile by number of captives.

According to Captive Intelligence’s data for number of captives in each major domicile, at the end of 2022 Vermont had reached number one with 639 active captives at year-end.



Bermuda had previously long been the largest domicile by this measure, but is now second with 625 active captives. Cayman Islands has 559 active captives.

“Our status as the leading captive insurance domicile is a direct result of the expertise within our robust regulatory framework and the intentional culture within our department to continuously evolve, consider ways we could be better, and work with the industry along the way,” said Commissioner Kevin Gaffney, Vermont Department of Financial Regulation.

The hard insurance market has prompted a dramatic increase in captive formations around the world, but Vermont has been well placed to capitalise on this growth.

Forty-one new captives were established in the State during 2022 and the last three years have been amongst Vermont’s top 10 years of growth in its 41-year history in the industry.

The first half of 2023 has seen 22 new captives licensed, taking its current total to 654. Traditionally, the last quarter of the year is when most captive formations take place in the US domiciles.

Assets under management in Vermont captives stands at $212bn and they write $42bn in gross premium.

“We’re excited to now be considered the top captive insurance domicile in the world,” said Vermont Governor Phil Scott.

“This status is testament to the work of Vermont’s expert regulators and strong network of highly skilled service providers, who have been committed to supporting captive insurance companies for over 40 years.”

Kevin Mead, president of the Vermont Captive Insurance Association (VCIA), said:  “It’s no surprise that Vermont has taken the lead in the industry. The ‘Gold Standard’ infrastructure here of regulators and service providers have provided stable, quality wrap around support for captive insurance companies for decades and will continue to do so for decades to come.”