The Vermont Department of Economic Development reported the state licensed a total of 38 new captive insurance companies in 2023, making it now home to 659 captives.
That growth made 2023 one of the best years since Vermont licensed its first captive in 1981.
The new captives were licensed in 13 different industries, with the top three industries being manufacturing (7), insurance (6), and real estate (6).
in 2024, the state said it has already licensed nine new captives.
In addition to the number of newly licensed captive insurance companies, Vermont’s 62 sponsored captive insurance companies continued to experience growth in the number of new protected cells, with more than 30 additions in 2023. Sponsored captive insurance companies provide a licensed insurance vehicle with an established structure for companies to participate in their own risks via protected cells.
“Vermont remains a credible global leader and committed to continuing to lead the industry with innovative, high-quality regulation that meets the needs of captive insurance companies,” said Governor Phil Scott.
“Companies continue to face challenges placing insurance and find they are better able to negotiate when they have a captive that can take on higher retentions and fill gaps in coverage,” said Director of Captive Insurance Christine Brown. She said a captive also gives its owners greater control over underwriting and claims management.
At least seven of Vermont’s new captives in 2023 have international roots hailing from Canada, Chile, Germany and the United Kingdom.
The state and the local captive industry launched the Vermont Captive Insurance Emerging Leaders (VCIEL) initiative in March 2023, bringing together about 30 captive insurance professionals in Vermont with a goal of raising awareness about captive insurance as a career path in the region.
“We recognize that we are at a critical time in the captive industry where the industry needs to work together to highlight captive insurance careers so we can keep pace with growth,” said Brittany Nevins, of the Department of Economic Development and current chair of the VCIEL.
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