14 New Vermont Captive Insurance Companies Make Strong Start to the Year
Redomestications and Healthcare Lead the Growth
Montpelier, VT - The Vermont Department of Financial Regulation reports the licensing of 14 new captives. The newly licensed captives include 7 Pure, 3 Risk Retention Groups, 1 Special Purpose Financial Captives, 1 Industrial Insured, 1 Sponsored and 1 Association. Five of the new captives have been redomesticated from other domiciles and three of them are in the Healthcare Sector.
“This strong start to the year is encouraging,” commented Dave Provost, Vermont’s Deputy Commissioner of Captive Insurance. “Considering there are more choices than ever to domicile your captive - I am glad that when quality companies evaluate their options that they choose Vermont.”
Vermont Governor Peter Shumlin, “Vermont has always sought companies of the highest standards. It does not surprise me that hospital and doctors’ groups are forming in Vermont in strong numbers.”
Healthcare continues to be one of Vermont’s most abundant sectors. Currently 96 hospital and doctors’ groups have Vermont Captives, making it the second largest sector for captives trailing manufacturing with 100. Another growth area are redomestications of captives from another domicile to Vermont.
“We strongly encourage existing and new captives to perform proper due diligence when comparing domiciles. It would appear that companies are doing just that, as we are currently experiencing a very large amount of redomestications,” said Dan Towle, Director of Financial Services for Vermont.
Newly licensed captives include the following sectors: healthcare, professional services, construction, manufacturing, non-profit, education, retail, trucking and insurance. Some notable new captives include PricewaterhouseCoopers, LLP, Syracuse University, Marubeni Corporation and Cummins, Inc.
Vermont will host the nation’s largest captive insurance conference when the Vermont Captive Insurance Association (VCIA) Annual Conference opens August 11. It is expected to bring together more than a thousand captive insurance professionals for what is the premier captive insurance conference in the world.
Captive insurance is a regulated form of self-insurance that has existed since the 1960’s, and has been a part of the Vermont insurance industry since 1981, when Vermont passed the Special Insurer Act. Captive insurance companies are formed by companies or groups of companies as a form of alternative insurance to better manage their own risk. Captives are typically used for corporate lines of insurance such as property, general liability, products liability, or professional liability. Growth sectors of the captive insurance industry include professional medical malpractice coverage for doctors and hospitals, and the continued trend of small and mid-sized companies forming captive insurance companies.