Proud of our past. Inspired for our future.


40 Years« back 40 Years« back

1981

Vermont Governor Richard Snelling signs legislation giving employers interested in establishing captives the first highly attractive domestic domicile. Under the new law, the Special Insurer Act of 1981, captive parents do not have to prove that insurance is not available in traditional markets, as is the case in other domestic domiciles. Rate and form regulatory approval are also not required.

Person

George Chaffee introduces Vermont’s landmark captive legislation.

Vermont’s landmark captive legislation is introduced by then Commissioner of the Department of Banking & Insurance, George Chaffee (on left). George also became president and founding board member of the Vermont Insurance Institute at Champlain College and the founding director of the Vermont Captive Insurance Association.

September 10, 1981

Vermont Department of Banking & Insurance (which is now known as Vermont Department of Financial Regulation) licenses its first captive, First Charter Insurance Company, formed by tire manufacturer B.F. Goodrich Company, to reinsure property risks. First Charter Insurance is still active today.

1982

July 29, 1982

Elixir Industries, a mobile home component manufacturer out of Gardena, California, becomes the first company to transfer risk from an existing captive to its new Vermont captive.

A First for Vermont

September 23, 1982

Vermont licenses its first industrial insured captive.

A First for Vermont

November 24, 1982

Vermont licenses its first association, National Telecom Corporation, which remains active in Vermont today.

 

Milestone

1983

April 13, 1983

Aluminum producer giant, Alcoa Inc., becomes first Fortune 100 company to set up a Vermont captive.

Milestone

1985

June 24, 1985

Vermont, with 28 captives, overtakes Colorado for the first time to become the largest U.S. domicile for the first time.

Milestone

The Vermont Captive Insurance Association (VCIA) is formed.

1986

MEDMARC Ltd., a Bermuda-based reinsurer of product liability coverage for medical equipment manufacturers, becomes the first captive to come onshore to Vermont as a Risk Retention Group (RRG).

Milestone

Person

Ed Meehan becomes Vermont’s first Captive Director.

“Ed (standing second from right) was one of the first people who worked to make Vermont the gold standard of domiciles. His legacy of dedication and professionalism continues to provide valued contributions to Vermont’s economic prosperity and will be felt for generations to come.” —Vermont Gov. Peter Shumlin

1987

Legislation

Legislation is enacted, earmarking a portion of premium taxes paid to Vermont. These premium taxes are to be used exclusively for captive regulation to maintain quality regulatory oversight (The Gold Standard).

Milestone

August 27, 1987

ICI Mutual Insurance Company, a Risk Retention Group becomes the 100th captive to become licensed in Vermont and is still licensed in Vermont to this day.

Milestone

1988

Legislation

Legislation is passed that allows captives to directly write excess workers’ compensation risks.

 

1989

Milestone

1990

Milestone

Person

Len Crouse is hired as Director of Captive Insurance.

For more than 30 years Crouse is a nationally recognized leader in insurance regulation and is credited as a key figure in advancing the captive insurance industry both nationally and in Vermont.

1991

Milestone

1993

Legislation

Legislation is passed to reduce Vermont captive premium taxes.

1995

To ensure consistent regulation of RRGs from state to state, the National Association of Insurance Commissioners (NAIC) adds RRGs to the Accreditation Program. Vermont becomes accredited.

1997

Person

Lisa Ventriss becomes president of the Vermont Captive Insurance Association.

Ventriss represents the industry and its strategic partners as it grows into the largest domestic and third-largest captive domicile in the world.  The hallmark of her contributions is in laying the foundation for what has become the industry’s leading educational organization, the International Center for Captive Insurance Education (ICCIE).

1998

Milestone

1999

May 20, 1999

Vermont passes legislation that allows the formation of Protected Cell Captives.

A First for Vermont

August 6, 1999

Vermont licenses its first Branch Captive.

A First for Vermont

October 14, 1999

Vermont licenses its first Sponsored Cell Captive, MGIC Reinsurance Corporation of Vermont which remains active in Vermont today.

2000

Columbia Energy Group wins U.S. Labor Department approval to fund employee benefit risks through its Vermont Branch Captive, setting the stage for other employers to do the same.

Milestone

2001

Peter Turner Insurance Company, a captive sponsored by the Roman Catholic Diocese of Brooklyn, N.Y., becomes the 500th captive to be licensed by Vermont regulators.

Milestone

2002

Milestone

Vermont overtakes Guernsey to become the world’s third-largest captive domicile, behind Bermuda and the Cayman Islands.

February 2002

VCIA and the State of Vermont host the first of their Road Shows in NYC extolling the virtues of captive insurance, these Road Shows were hosted throughout the U.S., with nearly 60 Road Shows hosted since then.

Vermont licenses a record 70 new captives in 2002 and 77 in 2003, following the hardening market resulting from the September 11, 2001, terrorist attacks.

2003

BISHCA (formerly B&I) is reorganized and a separate Captive Insurance Division is created; Len Crouse is appointed first Deputy Commissioner of the Captive Insurance Division.

Milestone

Legislation

The captive premium tax is capped at $200,000 per year and is still in effect today.

2004

Milestone

Milestone

August 2004

The International Center for Captive Insurance Education (ICCIE), created by the VCIA, is officially launched to develop a pool of qualified captive insurance professionals through a comprehensive education program.

2005

October 4, 2005

The efforts of the IRS Coalition, led by VCIA and Captive Insurance Companies Association (CICA), helps roll back proposals from the IRS that limited insurance tax treatment of captive insurance companies.

2006

Milestone

2007

Legislation

Vermont passes legislation that allows the formation of Special Purpose Financial Insurance Companies (SPFI) and licenses its first one on October 18, 2007, Northwind Reinsurance Company.

Milestone

August 2007

VCIA’s August Annual Conference draws record-breaking attendance, nearing 1,400 attendees.

A First for Vermont

December 7, 2007

Vermont licenses its first Sponsored SPFI, Metlife Reinsurance Company of Vermont, which remains active today.

2008

Person

 

David Provost is appointed Deputy Commissioner of the Captive Insurance Division, the third to lead the division in 40 years, highlighting the incredible continuity at the top of the division over the years.

2009

Milestone

Person

Richard Smith becomes VCIA’s President after a long history of public service to the State of Vermont, including seven years as Vermont’s Deputy Commissioner for the Vermont Department of Economic Development.

2011

Legislation

Act 21 makes a first-year $7,500 tax credit for new formations.

2012

Legislation

A new law allows companies to meet minimum capital and surplus requirements through the creation of a trust, approved by the Commissioner, giving captives more flexibility.

Legislation

April 2, 2012

Vermont passes legislation that allows the formation of Incorporated Protected Cells.

2013

Legislation

Act 29 allows an Association or Pure Captive to establish one or more separate accounts within the captive, much like what is currently utilized by traditional life insurers.

Award

Vermont wins U.S. Captive Review’s Domicile of the Year for domiciles having written over $5 billion in gross written premium. This is the first time Vermont has won this award.

October 11, 2013

Cassatt Insurance Group Inc. becomes the 1000th captive licensed in Vermont.

2014

Legislation

April 14, 2014

Vermont passes legislation that allows for the dormancy of captive insurance companies as an alternative to dissolution and ensures a smooth transition back to active status.

2015

Legislation

Act 20 enables captives to satisfy minimum capital requirements with marketable securities, reduces capital requirements for cell company structures from $500K to $250K, and improves cost-effectiveness to be more competitive with other domiciles, without reducing premium taxes or adding risk to the system.

2016

Milestone

Legislation

Act 74 allows Sponsored Captives and Association Captives to report on a fiscal year end in alignment with the parent’s reporting year end.

Award

November 8, 2016

Vermont wins the Non-European Union Domicile of the Year Award at the first European Captive Services Award Ceremony. This award is given to the top captive insurance domiciles, outside the European Union, that have outperformed their competitors and demonstrated the highest levels of excellence in the captive insurance industry in servicing the European marketplace.

2017

Milestone

Milestone

Legislation

June 8, 2017

A state law is adopted permitting captives to purchase Vermont Affordable Housing Tax Credits to offset annual premium tax liability, a win for captives and affordable housing in Vermont.

Legislation

Act 12 permits use of the three bases of accounting commonly used by Vermont captives—US GAAP, NAIC Statutory Accounting Principles (SAP), and International Financial Reporting Standards (IFRS), with any other basis used with permission.

Legislation

Vermont passes legislation (also Act 12) to add Agency Captives. Agency Captives are reinsurance companies controlled by an insurance agency or brokerage firm.

Vermont’s chief regulator, David Provost, Deputy Commissioner of the Captive Insurance Division is chosen as one of the first inductees to the Captive Review Hall of Fame.

Milestone

September 14, 2017

Vermont licenses its 1100th captive insurance company, AssureCap Indemnity, LLC, as a Sponsored Captive Insurance Company.

2018

A First for Vermont

May 2018

Vermont becomes the first and only state to license Affiliated Reinsurance Companies (ARC), shortly thereafter licensing its first ARC, MAPFRE RE Vermont Corporation, which remains active in Vermont today. MAPFRE RE Vermont Corporation was formed by MAPFRE RE, a global reinsurance company that conducts business in more than 100 countries. ARCs are a viable alternative for companies conducting these types of reinsurance transactions—usually offshore.

Legislation

July 2018

Vermont passes legislation that creates a new type of business entity, a Blockchain-Based Limited Liability Company, for entrepreneurs and companies who want to prioritize and create custom governance structures tailored to the technology. Read more

August 2018

Vermont Captive launches a new website to address the more complex needs of the captive industry, providing valuable and useful information in a clean, easy-to-use format.

Award

Sandy Bigglestone, Director of Captive Insurance for the Captive Insurance Division receives the Women to Watch Award for her leadership, expertise, and accomplishments in the captive industry. Presented by Business Insurance, Sandy becomes the first Vermonter and only insurance regulator to have received this prestigious award.

In 2018, Vermont-located captive management and professional services firms—an integral part of Vermont’s captive industry—directly impact Vermont’s economy, resulting in 407 jobs, $37.26 Million in labor income, and $95.5 Million to the state in Gross Domestic Product (GDP). Read more.

From 1981–2018 Vermont collected $533.17 Million in state premium tax and fees revenue. Read more.

Legislation

Governor Phil Scott signs bill that provides some of Vermont’s captive insurance companies an additional two weeks to prepare their annual reports and all the companies an additional two weeks to pay their Vermont premium taxes.

2019

Legislation

January 2019

Secretary of State, Jim Condos, and the Department of Financial Regulation Commissioner, Michael Pieciak, sign an agreement to join forces to explore blockchain technology and the benefits of its deployment in maintaining records in the captive insurance field.

The University of Vermont Health Network’s captive insurance company moves its captive from Bermuda to Vermont, basing its decision on “efficiency and buying local” according to John Brumsted, President and CEO of UVM Health Network.  Health Care continues to be the industry with the most captives in Vermont

 

Legislation

Act 3 lengthens the standard frequency of examinations to 5 years and provides flexibility in investments by giving companies the option to follow the traditional regulations or develop a plan for DFR approval.

2020

Milestone

February 2020

Five Vermont-domiciled captive owners are recognized in the Captive Review’s “Power 50” Awards. Collectively, these individuals account for more than half of all captive owners represented on the “Power 50.”

Legislation

June 26, 2020

Legislation passes reducing the minimum capital for a Sponsored Cell Captive from $250,000 to $100,000, highlighting Vermont’s continuing commitment to adopt annual legislation that addresses the changing needs of the captive industry, even during the COVID-19 pandemic.

A First for Vermont

July 23, 2020

Vermont licenses its first Agency Captive, Pegasus Insurance LLC.

A First for Vermont

August 11-13, 2020

In response to the COVID-19 pandemic, VCIA successfully hosts the first fully virtual conference.

September 30, 2020

Vermont collaborates with the VCIA to host the first international trade mission, a virtual trade mission with Mexico.

Award

October 5, 2020

Vermont wins Captive International’s first Domicile of the Year Award.

Award

October 7, 2020

Vermont wins U.S. Captive Review’s Domicile of the Year (More than $5 Billion Gross Written Premium) Award for a record 7th year in a row.

Award

November 26, 2020

Vermont was named the International Domicile of the Year by the European Captive Review, showing Vermont’s stature as a global leader in the industry.

return to top