Phil Scott, the Vermont Governor, last week signed into law updates to the state's captive insurance statutes modernising its regulatory framework.

Recommended by the Department of Financial Regulation captive insurance division in consultation with industry stakeholders, including the Vermont Captive Insurance Association, the 2025 bill introduces several key revisions.

The Vermont Government said highlights of the bill include:

• Aligning captive licensing authority more closely with the DFR’s insurance statutes

• Amendments to acknowledge and distinguish the signing authority of individuals in a manager-managed limited liability company

• Implementing provisions relating to mutual insurers and clarifying language for captives conducting business as reinsurance companies

Vermont had rising captive numbers through the end of 2024 and won awards from captive insurance publications, including US Domicile of the Year by Captive International and US Domicile of the Year and International Domicile of the Year by Captive Review.

Captivereview.com said Vermont is now the clear largest captive domicile in the world, both by captive numbers (659 at year-end 2023), and captive premium ($42 billion at year-end 2022).

This month, Captive.com said Vermont retained its position as the leading global domicile with 683 licensed captives at year-end. The Cayman Islands followed with 670, making it the largest offshore domicile. Bermuda ranked third globally with 631.

Mr Scott said: “It’s important for Vermont to consistently modernise captive insurance laws in this highly competitive sector. By working collaboratively with industry partners and the legislature, Vermont maintains its strong reputation in this sector and continues to be a place where companies choose to conduct business.”

Kaj Samsom, the commissioner of the state’s DFR, commented: “It’s clear that Vermont’s strength as a global leader is due to our regulatory framework and the DFR’s ability to work effectively with the robust network of service providers who have built a strong foundation for success in the industry.”

Kevin Mead, the chief executive of the VCIA, said: “The VCIA has worked with Vermont’s regulators and lawmakers over decades collaboratively and efficiently to evolve the industry and improve the experience of captive insurance companies that choose Vermont.”

This year is the VCIA’s 40th anniversary, which will be celebrated during their annual conference in August in Burlington, Vermont, the largest captive gathering in the world.