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 589 licensed captives, Vermont was the largest U.S. captive domicile in 2020, 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 680 and the Cayman Islands with 652 captives.
According to Business Insurance, there are 30 captive domiciles in the U.S., including 29 states and the District of Columbia.