With hard market conditions continuing in the traditional insurance market, captive domicile regulators say new captive insurance company formations remain at a high level.

In Vermont, the biggest US captive domicile with 656 captives, 25 new captives have been licensed so far this year, with several captive applications now being processed.

“The activity is very healthy. The hard conditions in the traditional market are a driver for new captive formations,” said Sandy Bigglestone, Vermont’s deputy commissioner of captive insurance in the state’s Department of Financial Regulation in Montpelier.

Captive formation growth also has been strong in other domiciles. For example, in Utah, 29 captives have been licensed so far this year, bringing its total captive count to 424.