A.M. Best’s Captive Directory 2000 Edition now ranks Vermont third in the world, surpassing Guernsey for captives domiciled behind Bermuda and the Cayman Islands. Vermont is home to more than twice as many captive insurance companies as all other U.S. states combined.
New legislation passed by the Vermont General Assembly will make it even more attractive for captive insurance companies to do business in the state, according to Dan Towle, director of financial services for the Vermont Department of Economic Development.
“The new bills are great news for Vermont,” Towle said. “Thanks to the legislature and the support of the governor, Vermont is continuing to improve our friendly regulatory environment and maintain our commitment to be responsive to the industry.”
Under the new legislation, smaller commercial insurance consumers that take advantage of the sponsored captive insurance mechanism can have greater options in “fronting” their risks with several alternatives.
Also, insurance companies will be able to include new forms of investment securities when assessing corporate financial obligations, which previously could not be considered. Another bill allows for the process of converting a mutual insurance company to a stock insurance company providing greater access to capital markets.
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