14 July 2016USA analysis

Vermont celebrates 35 years of captives

Vermont’s captive insurance industry is celebrating 35 years since its captive insurance legislation was signed into law by the late Governor Richard Snelling.

Vermont Governor Peter Shumlin said: “We have always tried to improve upon ourselves and have never rested on our laurels.

“We are very proud of Vermont being the top US domicile and look forward to our continued success over the next thirty-five years and beyond.”

Vermont currently has 1,071 licensed captives with 589 currently active making it the largest captive insurance domicile in the US and the third largest in the world.

Captives in Vermont wrote more than $27.5 billion in gross written premium in 2015.

Dan Towle, Vermont’s director of Financial Services, added: “The captive industry infrastructure that’s developed in Vermont over the past 35 years—the regulators, managers, accountants, auditors, attorneys, investment professionals, and others, as well as the Vermont Captive Insurance Association—is what has helped make our State the ‘gold standard’ of domiciles.

“Our infrastructure is second to none and has always been one of our greatest strengths.”

David Provost, Deputy Commissioner of Captive Insurance, commented: “Regulatory discipline with an emphasis on companies with sound business plans has been a tradition in Vermont that has served us well. Vermont’s first regulator, the late Ed Meehan, set the foundation for our regulatory excellence that was followed by Len Crouse and myself for the past 35 years.

“That legacy of sound regulatory oversight continues to be the standard we follow in Vermont.”