Vermont captive insurance leaders ask Legislature to fund DFR systems, workforce and conference infrastructure

Vermont captive insurance industry leaders and state regulators told the House Committee on Commerce and Economic Development on Wednesday that the state must invest in regulatory systems, workforce development and meeting infrastructure to sustain a sector that accounts for hundreds of captives and steady premium tax revenue.

At a Jan. 22 briefing, Kevin Mead, chief executive officer of the Vermont Captive Insurance Association, said Vermont hosts “nearly 700” captives and that the industry brings substantial economic activity to the state. Mead asked the committee to ensure the Department of Financial Regulation (DFR) has upgraded digital systems and other supports so regulators can continue to provide world-class oversight.

Mead said, “the legislation that enables captive insurance in Vermont is 44 years old this year and the VCIA, the association is 40 years old this year,” and described the industry as “very important” to Vermont. He urged lawmakers to consider resourcing the DFR’s systems as one of the committee’s priorities and to engage with the industry at the VCIA’s annual conference in Burlington this summer.

Why it matters: Vermont is a leading domicile for captive insurance and annually collects premium taxes and local spending tied to captive operations and conferences. Industry…