Informa Insurance News 24
HARD MARKET BOOSTS VERMONT CAPTIVE REGISTRATIONS
The US State of Vermont has licensed 38 new captive insurance companies in 2020, according to the latest data from the Vermont Department of Economic Development. The state is now home to 589 captives. The 2020 licensing activity reflected the changing insurance environment, according to Brittany Nevins, Vermont’s captive insurance development director. “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 process for licensing than we had licensed total in the first month of 2020.” The new captives were licensed in a range of industries, although hard market conditions drove captive formations in the construction and real estate sectors, according to Dave Provost, Vermont’s deputy commissioner of captive insurance. “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.”