A Firm Foundation: How Insurance Supports the Economy

Over the years, a number of alternatives to traditional commercial insurance have emerged to respond to fluctuations in the marketplace. Captives—a special type of insurer set up by a company to insure its own risks—first emerged in the 1980s. With 585 licensed captives, Vermont was the largest U.S. captive domicile in 2019, based on data in an annual survey of the world's largest captive domiciles conducted by Business Insurance magazine. On a worldwide basis, Vermont was the third-largest captive domicile, topped only by Bermuda with 715 and the Cayman Islands with 618 captives.

According to Business Insurance, there are 29 captive domiciles in the U.S., including 28 states and the District of Columbia.

Captives By State, 2018-2019

 

Rank Domicile 2018 2019
1 Vermont  580 585
2 Utah  441 (1) 435
3 Delaware  421 366
4 North Carolina  246 (1) 235
5 Hawaii  231 231
6 South Carolina  171 179
7 Nevada  182 (1) 174
8 Tennessee  169 140
9 Arizona  124 128
10 Montana  128 (1) 123
11 District of Columbia  105 104
12 Kentucky  64 64
13 Missouri  54 52
13 Georgia  49 (1) 52
15 New York  55 (2) 49 (2)
16 Alabama  44 48
17 Texas  42 45
18 Michigan  23 24
18 New Jersey  23 21
20 Connecticut  15 17
21 South Dakota  15 16
21 Oklahoma  11 11
23 Arkansas  6 9
24 Colorado  7 7 (2)
25 Ohio  8 6
26 Illinois  5 4
26 Nebraska  4 4
28 Maine  3 3
29 Kansas  1 1
  United States (3) 3,227 3,133

(1) Restated.
(2) From website.
(3) Excludes territories.

Source: Business Insurance Survey, Business Insurance (www.businessinsurance.com), March 2020.

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Issues Updates Paper Captives & Other Risk-Financing Options.