New captive insurance company formations continued to be strong in 2022, and captive formations are expected to remain at a high level in 2023 amid continued high rates in the traditional commercial insurance market, captive regulators say.

Vermont, by far the biggest US captive insurance domicile, licensed 41 captives last year. It was the sixth-highest number of new formations in a year in Vermont’s 41 years as a captive domicile.

“We are a top domicile. Our regulatory staff is the number-one captive staff in the world. We have the experience, and I don’t see that changing. That is one of the reasons we are so attractive, as well as a good law,” said Sandy Bigglestone, deputy commissioner of the Captive Insurance Division in Vermont’s Department of Financial Regulation in Montpelier.

And the pace of captive formations is continuing in Vermont this year. “So far, we already have issued five new licenses,” Ms. Bigglestone said. At the end of 2022, Vermont had a record 639 captive insurance companies.