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 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.

Captives By State, 2019-2020

 

Rank Domicile 2019 2020
1 Vermont 585 589
2 Utah 432 396
3 Delaware 366 288
4 North Carolina 235 250
5 Hawaii 231 242
6 Tennessee 194 212
7 South Carolina 179 175
8 Nevada 174 166
9 Arizona 128 131
10 Montana 121 114
11 District of Columbia 104 106
12 Texas 45 57
13 Georgia 52 56
13 Alabama 48 53
15 Missouri 52 51
16 Kentucky 64 45
17 New York 49 43
18 Michigan 24 26
19 Connecticut 16 22
20 New Jersey 21 20
20 South Dakota 16 15
22 Oklahoma 11 13
23 Arkansas 9 12
24 Ohio 6 7
25 Colorado 7 6
26 Nebraska 4 4
26 Illinois 4 3
28 Maine 3 3
29 Kansas 1 1
30 West Virginia 1 1
  United States (1) 3,182 3,107

(1) Excludes territories.

Source: Business Insurance (www.businessinsurance.com), March 2021.

View Archived Tables

Captives & Other Risk-Financing Options.