Let’s be honest for a second. When you hear about a place being “number one” in any industry, what’s the first thing that comes to mind? Probably a lot of volume, big numbers, and maybe a bit of a factory-like feel. In the world of captive insurance, you hear Vermont’s name a lot, often followed by impressive stats about how many captives they have.
But here’s the thing I’ve learned from watching this space for years: the real story behind Vermont’s success isn't something you can capture on a spreadsheet. It’s not about being the biggest; it’s about being the best partner.
As traditional insurance costs keep climbing, more and more companies are looking to captives for a smarter way to manage their risk. This puts a ton of pressure on domiciles to keep up. The real challenge isn’t just licensing new companies; it’s building an environment where those companies can actually thrive for the long haul. And that, my friends, is where Vermont just gets it right.
I had the chance to get some insight from Sandy Bigglestone, the Deputy Commissioner of the Captive Insurance Division in Vermont, and she really hit the nail on the head. “Vermont’s approach is rooted in a few key elements: accessibility, transparency, integrity, and trust,” she said. It sounds simple, but it’s a radical idea in a world that can often feel bureaucratic and impersonal. They see themselves as partners, not just gatekeepers.
It’s Not Regulation, It’s a Relationship
One of the biggest hurdles in the captive world can be the relationship between the people running the captive and the people regulating it. There’s often this fear that if you try something new, you’ll get slapped down by the regulators. It can stifle innovation and make everyone hesitant to communicate openly.
Vermont decided to flip that script completely.
They operate with what they call a "partnership mindset." Think about that for a second. When was the last time you thought of a regulator as a partner? Sandy explained it perfectly: “We view our role not just as regulators, but as partners in the success of captive insurance companies that we regulate. This needs to be grounded in mutual respect, transparency, and trust.”
This isn’t just talk. They live it. A huge part of this is just being available. And thanks to technology, they’re more accessible than ever. “Face to face now includes seeing people on screen,” Sandy mentioned, highlighting that they can connect with captive owners for everything from initial pre-application chats to board meetings. It removes the friction and makes people feel heard.
They also actively ask for feedback—the good, the bad, and the ugly. “We’re always interested in having feedback because we take it seriously,” she said. “We want to hear...what’s working, what isn’t working, and that informs our regulatory practices.” That’s how you build trust. You listen, and you adapt.
Gail Newman, who manages risk for Bright Horizons, has had a captive in Vermont for the better part of a decade. She put it this way: “The direct access and timeliness of support...is rock steady.” She admitted she could probably save a few bucks by moving to another domicile, but the value she gets from the relationships and solid guidance in Vermont is unmatched. “The relationships and network that exists in Vermont is like no other,” she added. That’s a powerful testament.
A Whole Community Working Together
It’s not just the regulators, either. A successful captive domicile is like a well-oiled machine with a lot of moving parts. You’ve got the captive managers, the associations, the service providers, and even the state lawmakers. If they aren’t all on the same page, things can get messy fast.
Vermont has spent decades making sure everyone is pulling in the same direction.
They’ve built an incredible bond with the Vermont Captive Insurance Association (VCIA) and other professionals. “We strive for effective relationships with service providers and captive owners alike,” Sandy told me. “They’re all part of the same universe of critical stakeholders.”
When everyone works together, the captive owner wins. They get the expertise they need, the advocacy they want, and the support that helps them succeed. It’s a holistic approach that just makes sense.
Their relationship with state lawmakers is particularly impressive. It wasn't built overnight; it's the result of over 40 years of consistent communication. “It’s about nurturing relationships,” Sandy explained. They make sure lawmakers are kept in the loop, and in return, the lawmakers see the incredible economic value the captive industry brings to the state—jobs, tax revenue, you name it. There’s a shared sense of pride, which creates an environment where everyone wants the industry to succeed responsibly.
So when it comes time to update a rule or introduce a new law, it’s not done in a vacuum. They think about how it will impact everyone involved and make sure it’s a change for the better.
Why “Quality Over Quantity” is More Than Just a Slogan
Okay, let’s talk about the numbers for a minute, because they are impressive. Vermont is a global leader in the number of captives and the amount of premium they handle. “Last I checked, we’re still number one globally,” Sandy confirmed. “We’ve licensed more captives so far this year than we had all of last year.”
But here’s the crucial part: they aren’t chasing those numbers.
“Vermont prioritizes quality, and we always have,” she emphasized. “It’s in our mission. We also prioritize sound governance and regulatory integrity.” In an industry where some domiciles might be tempted to lower standards to boost their stats, Vermont holds the line. They’d rather have a portfolio of well-run, sustainable captives than a long list of ticking time bombs.
Their goal is to build long-term partnerships, not win a short-term numbers race. This means they really get to know the companies they regulate. Through pre-vetting meetings, regular filings, and examinations, they develop a deep understanding of each captive's business. “We know what’s happening here,” Sandy said. “We know how to identify issues...and how to work with them to get them back on track.”
This hands-on, quality-first approach gives captive owners immense confidence. Melinda Young, from Alberici Group, said the regulators “demonstrate a deep understanding of the captive industry and consistently provide clear guidance and timely support.”
At the end of the day, that’s what it all comes back to. As another captive owner, Julie Bordo of PCH Mutual Insurance Company, described it, the culture in Vermont is “curious, responsive, collaborative valuing excellence and authentic relationships over narrow, rigid, oversight.”
So, what’s the secret to Vermont’s success? It’s refreshingly simple. In a complex financial world, they’ve focused on the one thing that matters most: people.
As Sandy concluded, “Trust and effective relationship building are the real measures of Vermont’s success—far more, I would say, than any other statistic.” And as the captive industry continues to change, that human-centric approach is exactly what will keep them at the forefront for years to come.
