Captive Growth Continues in Vermont

Vermont licensed 38 new captive insurance companies in 2023, its 9th-highest year of growth.

Vermont had 659 captives at the end of 2023, up from 639 at the end of 2022.

Growth is continuing, with 9 captive insurers licensed in 2024. "This is a great start," said Sandy Bigglestone, deputy commissioner of captive insurance in the Vermont Department of Financial Regulation.

Factors driving that growth include rising insurance prices in the commercial market as well as organizations who "desire to control and manage their risks," Ms. Bigglestone added.

With the passage of its groundbreaking captive insurance legislation in 1981, Vermont became the first US state to be competitive with offshore captive domiciles by, among other things, setting reasonable captive capitalization and surplus requirements.