Vermont enhances captive insurance regulations to bolster industry leadership

Vermont, one of the domiciles for captive insurance companies in the United States, has enacted important updates to its captive insurance laws through the 2025 housekeeping bill, H.137.

Signed into law by Governor Phil Scott on May 19, 2025, this legislation reflects Vermont’s ongoing effort to refine its regulatory environment in partnership with industry stakeholders, including the Vermont Captive Insurance Association (VCIA).

These amendments aim to ensure that Vermont remains a premier and competitive jurisdiction for captive insurers.

Scott highlighted the significance of keeping Vermont’s captive insurance framework up to date in a highly competitive market. “It’s important for Vermont to consistently modernise captive insurance laws in this highly competitive sector,” said Scott.

“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 in.”

Key elements of the new law include aligning captive licensing authority more closely with Vermont’s broader insurance statutes, specifically referencing 8 V.S.A, Section 3301.

The bill also clarifies signing authority for individuals within manager-managed limited liability companies, incorporates provisions related to mutual insurers, and updates language governing captives engaged in reinsurance activities.

Kaj Samsom, Commissioner of the Vermont Department of Financial Regulation (DFR), attributed Vermont’s global leadership in captive insurance to its strong regulatory foundation and productive collaboration with the industry. “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,” said Samsom.

“I am proud the DFR continues the tradition of working well with industry to advance and improve upon the regulatory environment for the long-term success of our domicile,” added Sandy Bigglestone, Deputy Commissioner of the Captive Insurance Division, Department of Financial Regulation.

“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,” commented Kevin Mead, CEO, VCIA.

This year also marks the 40th anniversary of the VCIA, which will celebrate its achievements at its Annual Conference in August in Burlington, Vermont.

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