Captive industry has boosted Vermont’s economy, says Governor Phil Scott

Since the introduction of the first captive bill in 1981, captive insurance has played an important role in supporting economic growth in the state of Vermont.

This is according to Governor Phil Scott, who spoke at a general session at the Vermont Captive Insurance Association (VCIA) annual conference in Vermont, Burlington, which is taking place this week.

“The captive insurance industry is so important to us, and we thank you for your business offering, high paying jobs and opportunities and valuable tax revenue as well,” he said.

There were 26 new licensed captives in Vermont in 2016, along with $32.5 billion in gross written premium for that year.

Vermont captives held over $200 billion in assets, the most of any domicile.

Every year with the help of the VCIA, the Governor and legislature review and update Vermont’s captive insurance laws, part of an annual tradition.

“Many don’t understand what captive insurance is, but they know it’s good for the state. So we have a willing partner, one we can contemplate these common sense changes,” Scott said.

Scott believes these initiatives in the captive space help support Vermont’s entrepreneurs, businesses, work forces and drive economic development.

Vermont congressman Peter Welch, who helped guide the first captive bill in 1981, said the captive industry in Vermont has worked due to two things: legislative authorisation and a strong regulatory framework. “Good regulation provides stability and flexibility,” said Welch.

Vermont legislators have continued to make the state competitive by amending its laws and making sure its department meets the needs of the industry.

“Sometimes to keep up with competitive threats from our perspective,” Welch added. “Sometimes just to modernise in the world of the ever changing financial worlds and the issues you contend with.”

VCIA president Richard Smith suggested that there are two pillars that aid the success of Vermont: the statues that have passed, along with the regulatory framework, the experience and dedication of the state as a whole.

Vermont has so far licensed nine captives this year, fairly consistent with numbers it had at this time last year, according to Ian Davis, director of financial services for the State of Vermont.

This article was first published on Captive International.

Get the latest re/insurance news sent to your inbox every day -  Sign up to our free email newsletters

Today’s stories

Novae poaches Beazley operations head for group COO position

India’s GIC Re plans international expansion, Lloyd's syndicate

Prudential merges UK fund management with insurance unit

Endurance acquisition boosts Sompo’s results

JLT Specialty hires Aon exec to build construction practice in US

Agency captives can align interests of brokers and carriers

Opaque nature of cyber risks makes captives managers wary

Don't miss our insurtech email newsletter - sign up today