Vermont might now be the world's largest domicile for thecaptive insurance industry. Since the beginning of 2012, Vermont has already licensed five captives, with more applications in process.
Recent trade press has published that our gross written premium volume is projected to have outpaced Bermuda making Vermont the largest domicile in the world in terms of premium volume.For the 6th year in 2011, Vermont surpassed the 40 new captives licensed mark with 41 new captive insurance companies bringing the total number of licenses to 952, according to data released by the Vermont Banking, Insurance, Securities and Health Care Administration (BISHCA).
Thirty were single parent captives, with six risk retention groups (RRG), three sponsored, one industrial insured, and one association. 2011’s new captive insurance licensees brings Vermont overall total to 952 with 590 active captive insurance companies.
The top industries licensing captives in the past year in Vermont were insurance, hospitals and medical groups and manufacturing. Vermont was also busy with activity in risk retention groups which continue to be a growth sector.
Captive insurance is a regulated form of self insurance that has been around since the 1960s, 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 securitization, professional medical malpractice coverage for doctors and hospitals, and the continued trend of small and mid-sized companies forming captive insurance companies.
Source: BISHCA 2.28.2012
Vermont is home to the world's largest captive insurance industry
Submitted by tim
on