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 620 licensed captives, Vermont was the largest U.S. captive domicile in 2021, 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 670 and the Cayman Islands with 661 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, 2020-2021

 

Rank Domicile 2020 2021
1 Vermont  589 620
2 Utah  396 384
3 Delaware  288 313
4 North Carolina  250 257
5 Hawaii  242 251
6 South Carolina  175 183
7 Nevada  166 161
8 Tennessee  145 (1) 153
9 Arizona  131 149
10 District of Columbia  106 112
11 Montana 115 (1) 102
12 Alabama  53 57
13 Georgia  56 57
13 Texas  41 (1) 54
15 Missouri 51 52
16 Connecticut  22 44
17 New York 40 (1) (2) 40 (4)
18 Kentucky 45 34
18 Michigan 26 24 (4)
20 New Jersey 20 20
21 South Dakota 15 16
21 Arkansas  12 14
23 Oklahoma 13 13
24 Ohio  7 6
25 Colorado 6 6
26 Nebraska  4 4
26 Maine  3 3
28 Illinois 3 2
29 Kansas  1 1
30 West Virginia 1 1
  United States (3) 2,681 (1) 3,069

(1) Excludes territories.

Source: Business Insurance, March 2022.

View Archived Tables

Captives & Other Risk-Financing Options.