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 580 licensed captives, Vermont was the largest U.S. captive domicile in 2018, 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 711 and the Cayman Islands with 674 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, 2017-2018

 

Rank Domicile 2017 2018
1 Vermont  578 (1) 580
2 Utah  481 (1) 443
3 Delaware  391 421
4 North Carolina  220 240 (2)
5 Hawaii  230 231
6 South Carolina  172 171
7 Tennessee  155 169
8 Nevada  172 (1) 156
9 Montana  141 (1) 129
10 Arizona  121 124
11 District of Columbia  102 105
12 Oklahoma  75 66
13 Kentucky  65 (1) 64
14 New York  58 (1),(3)  55 (2)
15 Missouri  50 (1) 54
16 Alabama  50 44
17 Texas  38 42
18 Michigan  22 23
18 New Jersey  21 (1) 23
20 Georgia  20 20
21 Connecticut  14 15
21 South Dakota  34 15
23 Ohio  15 8
24 Colorado  5 7
25 Arkansas  4 6
26 Illinois  3 5
27 Nebraska  4 4
28 Maine  2 3
29 Kansas  1 1
  United States (4) 3,244 3,224

(1) Restated.
(2) Estimated.
(3) From annual report.
(4) Excludes territories.

Source: Business Insurance Survey, Business Insurance (www.businessinsurance.com), March 2019.

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Issues Updates Paper Captives & Other Risk-Financing Options.