Captive Industry Insights

On March 24, 2026, Governor Phil Scott signed into law H.649, the State of Vermont’s annual captive insurance bill, reaffirming Vermont’s commitment to licensed captive insurance companies by enhancing regulatory clarity, strengthening oversight, and supporting continued innovation across the sector.

Banks are not merely service vendors to captives — they are structural enablers of how modern captive programs are capitalized, collateralized, and operated.

How Captives Drive Innovation in Medical Cost Containment

Investments in Insurtech for the full year 2025 rose by almost 20% year-on-year to $5.08 billion, according to Gallagher Re.

Five factors come into play to make the business successful: (1) determining the type of risk to put into the captive (actuaries/underwriters), (2) minimizing commercial insurance costs, (3) better risk management, (4) increasing risk awareness, and (5) tax benefits.

Though workers’ compensation claim volume dropped slightly in FY 2025, costs continued to climb, particularly for indemnity claims and older age groups.