Vermont To Celebrate 1,000th Captive Insurance Company

Oct 10, 2013

Gov. Peter Shumlin and other state officials are going to be marking founding of Vermont's 1,000th captive insurance company.

Shumlin will highlight the occasion Thursday at the Statehouse.

Vermont leads the nation in captive insurance companies.

Captive insurance companies are wholly owned subsidies of large corporations that want to insure themselves against property loss, casualty and liability.

Before Vermont law was changed in the early 1980s most captive insurance companies had to incorporate outside the country.

A 2003 study found the industry supported 1,400 jobs with salaries paying 70 percent higher than the Vermont average and generating an estimated $100 million economic spinoff. In 2005 the industry produced $23 million in premium taxes and licensing fees for the state.