The Vermont Department of Economic Development has revealed the state licensed 38 new captive insurance companies in 2020.
The new licenses see the total figure reach 589 captives, consisting of 564 active and 25 dormant captive insurance companies.
The new captives for 2020 were from industries such as healthcare, real estate, manufacturing, insurance, transportation, technology, construction, and professional services.
Some of the companies include the University of Southern California, State Street Bank, Saputo, and the Blackstone Group.
At least six of Vermont’s new captives in 2020 were formed by companies with international roots, including Canada, two from Germany, Sweden, Dubai, and Australia.
Vermont’s 2020 captive licenses are up from the previous year when the state welcomed 22 new captives and a total of 585 at the end of 2019.
Commenting on the 2020 figures, Brittany Nevins, captive insurance economic development director, says: “Vermont’s 2020 licensing activity in many ways reflected the changing insurance environment.”
She adds: “We licensed eleven new captives in the fourth quarter alone. The market that began hardening in 2019 continued rapidly throughout 2020 and now into 2021. Before 2021 began we had more captives in the process for licensing than we had licensed total in the first month of 2020.”
Dave Provost, deputy commissioner of captive insurance in Vermont, explains that the particularly hard market conditions in commercial property insurance influenced the number of captive formations in the construction and real estate sectors.
Provost comments: “Nearly a third of the new formations this past year had parents from those industries, with price and availability commonly noted as drivers for the captive. The global pandemic has not stood in the way of Vermont’s continued ability to be responsive, efficient, and collaborative.”
To understand Vermont's plans this year, read the Captive Insurance Time interview with Nevins, where she discusses her plans for the state’s captive sector and her views on the current market.
