Vermont Department of Financial Regulation
Sandy Bigglestone, deputy commissioner of captive insurance, provides more insight into the current state of the Vermont captive market and how the division intends to adapt to regulatory changes
How would you describe the current state of the Vermont captive market in terms of growth and development?
Vermont’s captive market is thriving. In 2023, we are experiencing a similar positive growth pattern as we have over the last few years, pointing to a real need for organisations to manage their risk using a captive insurance company.
What factors have contributed to Vermont’s continued success as a leading domicile for captive insurance companies?
It is a culmination of years of a consistent regulatory approach, a stable political environment and dedication to the industry. While efforts are spent developing the domicile, we find it equally important to continue to have a wealth of talent and expertise so we remain engaged with efforts to grow the workforce to support the industry. Another factor is the Vermont infrastructure, which is a model of excellence.
Are there any emerging trends or patterns within the Vermont captive market that you have observed recently?
Most notably, we are seeing a continuation of the challenging commercial marketplace prompting growth for captive insurance in all the typical commercial lines of business.
Can you provide an overview of the types of industries or sectors that are predominantly utilising captive insurance in Vermont?
All industries and sectors. In terms of new licences, the majority comes from the following industry sectors: healthcare, construction, real estate, insurance, manufacturing, retail, agriculture, entertainment, professional services, transportation, energy, nonprofits and technology.
How does the captive division adapt to changes in the regulatory landscape to ensure the competitiveness and attractiveness of the Vermont captive market?
The division stays engaged with industry and attends various industry events. We also attend the National Association of Insurance Commissioners (NAIC) meetings and participate in NAIC activities, which enables us to engage with other regulators.
Internally, we exercise our critical thinking skills by constantly looking at what we do and ways in which we can improve our regulatory processes.
Further, we gather feedback from our stakeholders about what we are doing right and areas we might improve.
What initiatives or strategies has the captive division implemented to promote the growth and expansion of the Vermont captive market in recent years?
We have increased our visibility, which seems to have had a positive effect on promoting ourselves and showcasing our talent. Companies tell us they choose Vermont because we have quality regulation and an experienced infrastructure of service providers, plus a stable political environment. We are being intentional about ways in which we can focus on our strengths.
Upholding the same regulatory approach, focusing on culture and talent acquisition, are great ways to solidify our success.
