Forty-one new captives were licensed by the State of Vermont during 2022, taking its year-end total of active captives to 608. There is a further 31 dormant captives in the state.
Almost 40 individual cells were also established during the year, meaning there are now more than 500 active cells housed within 59 sponsored captives in Vermont.
The growth numbers are the sixth highest the state has recorded since passing captive legislation in 1981. Five new captives have already been formed in 2023.
“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 at Vermont’s 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 41 formations are made up of 30 pure captives, six new sponsored captives, two agency captives and two Risk Retention Groups (RRGs).
The majority of new captives are owned by American businesses or organisations, but there were also two formed from Canada, one Mexican captive and one Austrian.
There are 17 different industry sectors represented in the new cohort, with healthcare (7), construction (5) and real estate (4) leading the way.
“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 Vermont Department of Economic Development is hosting “Captive Insurance Day” for legislators at the Statehouse, in the capital Montpellier on 18 January, as part of ongoing efforts to educate and raise awareness of the sector and its importance to Vermont.
“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.”