Vermont continues to grow its captive insurance industry. The Vermont Department of Economic Development (DED) has reported that 2024 was among Vermont’s top 10 highest years of growth since it enacted its first-in-the-nation captive legislation in 1981.
Vermont licensed a total of 41 new captive insurance companies in 2024, making it now home to 683 licensed captives, consisting of 654 active and 29 dormant captives. The new captives represent 16 different industry sectors, the top being real estate, construction, health care and insurance, and a handful of conglomerates with operation in multiple sectors.
The state said the new year of 2025 is already off to a great start, with eight new captives licensed in the first week of January.
Vermont has licensed a total of 1,370 captive insurance companies to date.
“Vermont continues to be a leader in the captive insurance industry and is committed to providing high-quality regulation and service to captive insurance companies that choose to do business here,” said Governor Phil Scott.
Vermont’s global influence showed in the latest licensing numbers. At least five of Vermont’s new captives in 2024 have international roots hailing from France and the United Kingdom, with three from Mexico. Vermont has more than 80 companies with international ownership.
In addition to the number of newly licensed captive insurance companies, Vermont’s 69 sponsored captive insurance companies continue to experience growth in the number of new protected cells, with over 30 additions in 2024. Sponsored captive insurance companies provide a licensed insurance vehicle with an established framework that allows businesses to manage their own risks through protected cells.
“We are finding commercial property insurance continues to tighten as a result of increased natural disasters,” said Brittany Nevins, Captive Insurance Economic Development Director, DED. “This has resulted in a rise in captive insurance companies in the real estate industry to mitigate these property coverage challenges and provide greater long-term stability and relief.”
Source: Vermont Department of Economic Development
Topics Vermont
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