Vermont licensed 7 new captives in the first quarter of 2011 which is the strongest start since 2005, according to the Department of Banking, Insurance, Securities and Health Care Administration (BISHCA). The 7 new captives consisted of 4 single-parent, 2 risk retention groups and a special purpose captive.
“We’re seeing wide diversity in the types of applications,” said David Provost, Deputy Commissioner of Vermont’s Captive Insurance Division. “Captives formed for professional medical liability and smaller to mid-sized companies are trending strongly.” The first quarter pace surpasses Vermont’s 30-year first quarter average of 5.2 captives.
“It is encouraging to see this strong start to 2011,” said Governor Peter Shumlin. “We will continue to work with the legislature to be responsive to industry needs. Vermont is committed to maintaining its ‘Gold Standard’ reputation.”
Vermont has current captive insurance legislation, H.438, which has passed the House of Representatives and has moved on to the Senate. The proposed legislation will allow for the formation of incorporated protected cell companies and expand its cell legislation, providing more options for companies interested in that structure.
“Vermont continues to see an increasing number of smaller and mid-sized companies exploring the captive insurance option,” said Dan Towle, Director of Financial Services. “This trend exemplifies how Vermont provides a good fit for companies of all sizes.” Half of Vermont’s captives write less than $5 million in gross written premium annually.
