Frequently Asked Questions

Yeah, We Get That A Lot

Why Join VCIA?

Becoming a VCIA Member allows you immediate access to the comprehensive information that you need as a captive owner or service provider. You become part of a group that shares your business interests, questions, desire for industry information, access to key players in the industry, and much more.

Not only does VCIA provide excellent captive education and connection with other captive professionals, the association is also continuously hard at work behind the scenes on legislative affairs. VCIA has legislative representation on the federal level as well as the state level -- our eyes and ears are on constant alert to ensure the continuation of a strong captive insurance industry. Your membership in VCIA keeps the industry strong, and keeps you continuously engaged and learning all about captives. 

VCIA is the largest trade association for captives in the world. Our professional staff is engaged and aware of our members' needs. As the industry grows and changes, we adapt and adjust our focus accordingly so that we are always working in our members best interests. VCIA was formed in 1985 when the Vermont domicile was young. We work closely with the State of Vermont's Captive Division and their expert staff to keep the industry growing, adapting and strong.

Join our association today. You will be in the great company of nearly 500 other organizations that are currently VCIA Members -- working and learning together to advance all of your captive interests.  

Captive vs. Traditional? Commercial insurance companies sell insurance to the general public and are licensed in all states in which they do business. By contrast, captive insurance companies insure only their owners, who are sophisticated entities with the ability to manage and retain their own risk. Consequently, the degree of regulatory oversight required for captives is different than that which is required for commercial insurers. The captive is licensed in only one state, and operates under the captive insurance law of that domicile.

Why Form a Captive?

One of the chief functions of a captive is to facilitate the efficient financing of risk within an organization. In addition, captives form part of the overall financial planning structure for a corporation; act as a shield against upswings and downturns in the commercial market; serve as a direct insurance company that issues policies to subsidiaries in a group or, can serve as a reinsurance company that assumes risks behind commercial insurers. Specific captive benefits include unbundled service support; improved cash flow and investment return; reduced overall cost of coverage; access to the reinsurance market; underwriting profit; ability to provide coverage that is unavailable or unaffordable in the traditional marketplace; and coordination of global exposure.

Why Vermont?

In 1981, Vermont passed the Special Insurer Act, which was designed to provide an attractive environment for the formation of captives. Since that time, the industry and state have worked continuously to modify and enhance the original legislation. This has allowed Vermont to retain its premier position as the largest onshore domicile. Vermont is the largest onshore domicile. It is the second largest in the world in assets and third largest in the world in number of licenses.

Some views of Vermont from industry experts:

  • Vermont's state government is educated, aware and responsive to captives and RRGs;
  • The industry's infrastructure is among the most sophisticated and mature networks in the world;
  • Service providers form a support network that is without peer;
  • Low incorporation, administration and management costs;
  • The best regulation, the most developed infrastructure, and the highest degree of flexibility and innovation available to those wishing to domicile onshore.