Devoted to the Insurance industry and all thing related

The United States has seen an increase in the number of captive insurance companies based within its borders according to National Underwriter.  If you’re not sure what a captive insurance company is then here is a definition from Captiveinsurancecompanies.com:

“A captive insurance company is simply an insurance company owned by the parent that underwrites the insurance needs of the parent's subsidiaries.”

Many medium to large sized companies have formed captives with Vermont being the leading state in the U.S. for housing captives.  Compared to the other U.S. domiciles Vermont has “more than four times the number of top global 1,500 companies.”  In addition “large companies in the United States are more often establishing captives onshore, with about two-thirds of U.S. parented captives established in the last five years domiciled in the United States.”

Interestingly Hawaii is second behind Vermont as the second most popular state for captives “followed by New York, Arizona and South Carolina.”  Who knew my birth state of Arizona would be such a magnate for captive insurance companies.