Vermont top captive insurance domicile worldwide

It surpasses Bermuda, Cayman Islands as top captive insurer domicile globally

Vermont top captive insurance domicile worldwide

Insurance News


Two prominent publications in the captive insurance industry have named Vermont the top captive insurance domicile in the world. Based on the most recent data available, Vermont has secured its No. 1 status, surpassing its main competitors, Bermuda and the Cayman Islands.

The ranking of domiciles is primarily determined by the number of active captives licensed in each location. Vermont's continuous growth has outpaced Bermuda and the Cayman Islands in recent years, with the current number of active captive insurance companies in Vermont standing at 639, compared to Bermuda's 633 and the Cayman Islands' 559 at the end of 2022.

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

Vermont's growth trajectory shows no signs of slowing down. According to the Captive Review, by the end of March 2023, Vermont had licensed 12 new captives, while Bermuda only licensed 4 and the Cayman Islands licensed 8. By May 12, Vermont had exceeded the milestone of licensing 1,300 captive insurance companies since the enactment of captive enabling legislation in 1981.

In the first half of 2023 alone, Vermont licensed an additional 22 captives, bringing the total number of current licenses to 654. These figures underscore Vermont's exceptional growth over the past three years, positioning it as one of the top 10 years of growth in its 41-year history.

The latest Vermont data for 2022 highlights impressive figures, with $212 billion in total assets under management and $42 billion in gross written premiums. These numbers signify substantial increases from the previous year and provide further evidence to support Vermont's top-ranking status.

Vermont's international efforts have also received recognition. The state won the Non-European Union Domicile of the Year Award by Captive Review in 2016 and was awarded the International Domicile of the Year in 2020 and 2022. In March 2023, Vermont sent a delegation to Mexico City to conduct an educational forum with the Vermont Captive Insurance Association (VCIA), marking the first initiative of its kind in the Latin American region.

“The growth of the industry makes a tremendous impact on a variety of companies and organizations in all sectors from all over the world, but also impacts our small state in a significant way, ensuring the presence of hundreds of good jobs for Vermonters and revenue that contributes directly to programs that impact Vermont’s most vulnerable populations,” said Commissioner Joan Goldstein of the Vermont Department of Economic Development.

Vermont remains dedicated to supporting captive insurance companies in various unique ways. The state ensures sufficient regulatory staffing, with a team of over 30 regulators and in-house examiners solely dedicated to captive insurance companies. Vermont staff members actively participate in captive insurance committees and regulatory bodies, contributing to the industry's growth and promoting the importance of quality regulation.

“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 Vermont Captive Insurance Association (VCIA) plays a crucial role in shaping the industry through a yearly collaborative "captive bill" that integrates input from both industry professionals and regulators. Vermont legislators recognize the significance of accommodating the evolving needs of the industry and amending statutes accordingly, considering the program's contribution to job creation, tax revenue, and fees.

“It’s no surprise that Vermont has taken the lead in the industry,” said Kevin Mead, president of the VCIA. “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.”

The VCIA will hold its annual conference Aug. 7-10 at the DoubleTree in South Burlington. With over 1,040 attendees from around the world, this event will delve into emerging risks, industry trends, and feature 70 exhibitors. Vermont leaders and regulators will be present to engage with current and prospective captive insurance companies, offering insights and addressing questions.

The VCIA recently named four new members to its board.

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