The Vermont Department of Financial Regulation has licenced 31 new captives in the first seven months of the year, compared to 23 for the same period in 2023.
In addition, there are eight new captive applications currently under review in the State, according to Christine Brown, director of captive insurance at the Vermont Department of Financial Regulation.
Brown was speaking on the Global Captive Podcast at the Vermont Captive Insurance Association (VCIA) annual conference in August.
“Usually in July it slows down a little bit after the 1 July renewal, and then it picks back up around the end of August and early September for the final two quarters of the year,” Brown said on GCP #110.
She added that healthcare and healthcare services is a sector where the Department is currently seeing a lot of new formations.
“We’re also seeing a number of formations in the real estate and energy sectors,” Brown said.
She also noted that there have been formations from a handful of large privately held family conglomerates.
“This is super interesting business because they have their hand in a bunch of different things,” Brown said.
“I don’t know if it’s a trend, but I think they are now understanding and hearing more about captives and getting more comfortable with the thought of self-insurance through a vehicle like a captive.”
Brown said new licences and applications are predominantly from United States-based companies, but the Department has recently licensed a handful of captives owned by companies in Latin America, including one very recent formation from a Mexican company.
“That’s exciting and we’re continuing to see the fruits of our efforts from when we went down a couple of years ago to Mexico City for our trade mission to educate the Latin American market,” Brown added.
“It’s exciting that we’re seeing some business as a result of that.”