Vermont Modernizes Captive Insurance Laws, Solidifying Its Global Leadership
Burlington, VT — May 26, 2025 — Governor Phil Scott has signed significant updates to Vermont’s captive insurance statutes, further enhancing the state’s position as the world’s leading domicile for captive insurance. The revisions, proposed by the Department of Financial Regulation (DFR) in collaboration with industry stakeholders, including the Vermont Captive Insurance Association (VCIA), aim to modernize the regulatory framework governing captive insurance.
Key updates from the recently passed bill include streamlining captive licensing authorities to better align with existing DFR insurance statutes, clarifying the signing authority for individuals in manager-managed limited liability companies, and providing clearer language for captives operating as mutual insurers and reinsurance companies.
Vermont’s dominance in the captive insurance sector has grown, boasting 683 licensed captives at the end of 2024, up from 659 the previous year, while holding approximately $42 billion in captive premium as of the end of 2022. Captive International and Captive Review recognized Vermont as the US and International Domicile of the Year, underscoring its reputation for excellence.
Governor Scott emphasized the need for continual modernization in the competitive captive insurance landscape. “By working collaboratively with industry partners and the legislature, Vermont maintains its strong reputation in this sector,” he stated.
Kaj Samsom, DFR Commissioner, also acknowledged the role of the state’s regulatory framework in Vermont’s success, stating, “Our ability to work effectively with a robust network of service providers is crucial.”
The VCIA, celebrating its 40th anniversary this year, plans to highlight these achievements at its upcoming annual conference in Burlington, anticipated to be the largest gathering of captive insurance professionals globally. This ongoing collaboration ensures Vermont remains a preferred choice for businesses seeking to establish captive insurance entities.
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