In 2016, health care industry captives in Vermont, USA, surpassed manufacturing to become the state's largest captive sector.

      Manufacturing had traditionally dominated Vermont's captive industry, but by the end of 2016, of the state's 584 active captive insurers, 102 came from the health care industry, exceeding manufacturing's 101. Other industries include insurance with 76 captives, construction with 36, banking with 31, professional services firms with 28, and retail and transportation with 25 captives each.

        David Provost, Deputy Commissioner of the Vermont Department of Financial Regulation, said that the number of health care captives has shown a sustained growth trend in recent years rather than a sudden rise - it has long been one of the state's largest industries - and the main insurance product of the health care captive sector is medical malpractice liability insurance for hospitals and physicians.

        By premium volume, 172 captive insurers have premiums below US$1 million, 141 have premiums between US$1 million and US$5 million, 62 between US$5 million and US$10 million, 129 between US$10 million and US$50 million, 32 between US$50 million and US$100 million, 36 between US$100 million and US$500 million, and a total of 12 captive insurers have premiums above US$500 million.

       Many captive insurers with premiums below US$1 million are in the process of winding down or gradually exiting, although some captives with zero premiums have not applied for dormant status.

       As of the end of 2016, Vermont captive insurers' premium income reached US$202.5 billion, up from US$197.7 billion in 2015. Of this, direct or renewed new business premiums in 2016 totaled US$32.8 billion, also up from US$27.5 billion in 2015.

Source: Captive Review