Why Vermont still leads the way

Award-winning domicile focuses on stability, service and long-term partnerships as captive owners navigate an increasingly uncertain risk landscape.

Vermont’s latest success at the 2026 Captive Review US Awards has reinforced its standing as one of the world's leading captive insurance domiciles. But for Brittany Nevins (pictured), captive insurance economic development director at the Vermont Department of Economic Development, the recognition is less about trophies than about validating a long-established approach built on collaboration, regulatory expertise and long-term relationships.

Speaking to Captive Review, Nevins said the awards reflect the strength of the entire Vermont captive ecosystem rather than the achievements of any single organisation. As the captive sector continues to evolve in response to supply chain and cyber threats, climate risks and broader economic uncertainty, she believes Vermont’s greatest advantage remains its ability to adapt without sacrificing the consistency that owners value.

Although Vermont has become accustomed to industry recognition over the years, Nevins stressed that the latest accolades belong to a much wider community.

“These awards are incredibly meaningful because they really reflect something we've known for a long time – that Vermont's success is built on the strength of our community,” she said.

“Vermont has never tried to be the biggest domicile. We really focus on being the most trusted, experienced and responsive.”

That community extends well beyond state government. It includes the Vermont Department of Financial Regulation, legislators, captive managers, attorneys, actuaries, auditors, investment managers, bankers, the Vermont Captive Insurance Association (VCIA) and, perhaps most importantly, the captive owners themselves.

“While it's nice to receive national recognition, the award really belongs to everyone who contributes to Vermont's ecosystem,” Nevins explained.

She added that the recognition confirms the state's long-term strategy of prioritising quality over size.

“Vermont has never tried to be the biggest domicile. What we’re really focusing on is being the most trusted, the most experienced, and the most responsive.”

At the same time, Nevins said industry awards should not encourage complacency. The captive market continues to change rapidly, requiring regulators and service providers alike to continue innovating and improving the level of service they provide.

Four decades of experience

Vermont has long promoted itself as the gold standard US captive domicile, and Nevins believes its history remains one of its strongest competitive advantages.

“We’ve been regulating captives for over four decades, so there’s an institutional knowledge here that's difficult to replicate,” she said.

According to Nevins, that experience is reinforced by regulatory consistency. Captive owners increasingly value predictability, particularly during periods of market volatility and changing risk landscapes.

“Our regulatory team is accessible, experienced and focused on understanding each captive’s business while maintaining strong oversight at the same time.”

She also highlighted the depth of Vermont's professional services market. Approximately 32 regulators are dedicated exclusively to captive insurance companies, while a mature network of legal, actuarial, banking, accounting and management specialists provides expertise that has developed alongside the industry's growth.

Rather than view itself as simply a licensing jurisdiction, Vermont positions itself as a long-term partner.

“Captives aren't simply choosing a jurisdiction; they're choosing a long-term partner,” Nevins said. “Vermont has built its reputation by earning that trust year after year.”

Tackling increasingly complex risks

The environment facing captive owners has become significantly more complicated over recent years.

Nevins pointed to cyber attacks, AI, supply chain disruption, rising healthcare costs and climate-related exposures as examples of the increasingly diverse risks organisations must manage. 

At the same time, companies are looking beyond traditional insurance purchasing towards more strategic approaches to financing risk.

Organisations also expect regulators to be more responsive and engaged than ever before. Rather than simply processing applications and conducting routine oversight, captive owners increasingly want opportunities to discuss emerging challenges directly with regulators and industry experts.

To ensure Vermont continues to meet those expectations, Nevins said maintaining open communication remains central to its approach.

“We regularly gather feedback through industry events and direct conversations, so we know where the market is headed.”

One important initiative currently under way is a joint survey being conducted with the Vermont Captive Insurance Association, Vermont Department of Financial Regulation and the Vermont Department of Economic Development. The anonymous survey is designed to better understand better both the challenges captive owners face in today’s market and their experience of Vermont’s regulatory environment.

The state is also reviewing its own internal operations. “We’re doing a lot of internal work right now to make sure that we are improving our internal processes as well, so we can be more efficient and really keep pace with the needs of businesses today and in the future.”

Captives become strategic tools

Nevins believes one of the most notable trends across the US captive market is the growing recognition that captives can serve much broader business objectives than simply filling a gap with commercial insurance.

“We're seeing continued interest in captives, as organisations recognise that they can be a strategic business tool, not simply an insurance solution.”

Companies are becoming increasingly sophisticated in how they use captive structures to finance emerging risks, including cyber and climate exposures, employee benefits and medical stop-loss programmes.

Healthcare organisations, public entities and middle-market businesses all continue to represent areas of growing interest in Vermont.

Nevins also observed changing trends in captive structures themselves. While some organisations continue to begin with protected cell arrangements before establishing single-parent captives, others are moving in the opposite direction, demonstrating greater flexibility in how cells are being used.

“We’ve seen companies start out in cells then expand into single-parent captives, but we’ve also increasingly seen the reverse of that happen increasingly.”

This reflects a broader shift towards using captive structures in increasingly complex and strategic ways rather than following a single, predictable development path.

Periods of economic and geopolitical uncertainty are also encouraging organisations to seek greater control over their risk financing strategies.

“We unfortunately continue to be in pretty great periods of uncertainty,” Nevins observed.

Looking ahead, she expects continued growth around emerging risks, alternative risk financing and closer alignment between enterprise risk management and wider business strategy.

Competing through quality

Competition among captive domiciles has intensified over recent years as more jurisdictions seek to attract new formations.

Rather than view this as a threat, Nevins believes stronger competition benefits the industry.

“Competition is definitely healthy because it pushes every domicile to improve.”

She also believes the expanding captive market provides opportunities for multiple jurisdictions, as organisations have differing priorities and requirements.

“It's good to have a menu of options.”

However, Vermont has deliberately avoided competing through a “race to the bottom approach”, where competitors progressively lower their standards, regulations or prices to gain a competitive advantage.

“Our strategy has never been to compete on being the least expensive or having fewer expectations of companies we regulate,” Nevins explained.

Instead, the state continues investing in risk-focused regulatory expertise, industry engagement and international promotion while maintaining high-quality regulation and oversight that supports businesses over the long term. 

“Companies that choose Vermont recognise the importance of expertise and standards for their long-term success.”

Participation in conferences and industry events also allows Vermont to remain closely connected to existing and prospective captive owners, keeping a finger on the pulse of market developments while contributing to broader discussions about the future direction of captive insurance.

“We really get to listen to folks in the industry when we go to those events and, at the same time, have the opportunity to steer the industry in the right direction.”

That dialogue and collaboration enables regulators to refine Vermont's framework without compromising the integrity that has underpinned its reputation for decades.

Priorities for the year ahead

Looking forward, Nevins identified several priorities that will shape Vermont's captive strategy over the next 12 months.

Supporting existing captive owners remains the first objective by ensuring they continue receiving the responsive service that has become one of Vermont’s defining characteristics.

The state also intends to broaden awareness of captive insurance among organisations that might benefit from the model but remain unfamiliar with its advantages.

Education therefore continues to play a central role in Vermont's growth strategy.

Alongside attracting new captive owners, workforce development has emerged as another significant priority.

Like many sectors across financial services, captive insurance faces an ongoing talent challenge. Vermont has therefore been working with higher education institutions and non-traditional students through a partnership with the VCIA's Emerging Leaders Initiative to increase awareness of careers within the captive industry.

The state is also beginning to explore engagement with secondary schools to encourage earlier awareness of career opportunities.

Nevins believes strengthening partnerships across the industry will remain essential to sustaining Vermont’s leadership position.

“Our collaborative model is one of our greatest strengths. And we want to continue building on that.”

Ultimately, she said, Vermont’s objective remains unchanged despite the industry’s continued evolution.

“We want to ensure that we continue to be a leader in the industry for organisations seeking stability, expertise and a trusted long-term partnership.”

As captive insurance continues expanding into new sectors and addressing increasingly sophisticated risks, Vermont appears determined to demonstrate that experience, collaboration and regulatory consistency remain powerful competitive advantages in an increasingly crowded marketplace.

Brittany Nevins is captive insurance economic development director at the Vermont Department of Economic Development. She can be contacted at: brittany.nevins@vermont.gov

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