Captive insurance refers to a subsidiary corporation established to provide insurance to the parent company and its affiliates. A captive insurance company represents an option for many organizations, from large corporations to nonprofits, that want to take financial control and manage risks by underwriting their own insurance rather than paying premiums to third party insurers. Establishing a captive insurance company often provides significant benefits to organizations and risk management professionals, such as coverage tailored to meet the organizations needs, pricing stability, and capturing underwriting profit.
For over 40 years, Vermont has been a global leader in captive insurance. Vermont is the number one U.S. domicile and third in the world for the number of captive insurance companies licensed to date, which is now over 1200. Vermont is an 8 time “Domicile of the Year” winner in the United States and has won multiple international awards for the quality of its regulation and support of businesses. Vermont’s captive insurance industry serves 48 of the Fortune 100 corporations and 18 of the Dow 30. Multiple Vermont staff have won prestigious awards for their contribution to the captive industry.
In Vermont, with over 30 regulatory staff members focused solely on captive insurance, the focus is on the balance of firm and fair regulation, proportional to the risk assumed by the captive. Vermont’s experienced regulatory staff is knowledgeable and ready to handle all inquiries and is prepared to make your captive insurance experience both valuable and efficient.
Since 1981, successive governors have been supportive of the captive industry and legislatures have passed proactive legislation to keep pace with the ever-changing needs of this dynamic industry. With the worlds largest captive insurance trade association in the world right here in Vermont, the Vermont Captive Insurance Association (VCIA), legislation is informed through a collaborative process with industry experts.
Vermont’s infrastructure of brokers, managers, accountants, and more offer all of the management expertise that companies are looking for when considering captive insurance. Vermont’s captive infrastructure is sophisticated and diverse, with 23 state approved captive management firms. The state’s infrastructure is further complemented by the VCIA and the vast educational offerings they provide. Every year on average over 1000 captive professionals from around the world travel to Vermont for the VCIA annual conference in Burlington.
As a leader in the Captive Insurance Industry, Vermont is fortunate to have unparalleled government support, providing resources for ongoing formation and the future needs of captive operations. There are no surprises or slowdowns, because companies are dealing with the most experienced and stable captive jurisdiction. Our reputation protects your reputation, which is why the industry refers to Vermont as “the gold standard” in captive insurance.