MONTPELIER – Gov. Peter Shumlin announced today that the Department of Financial Regulation has licensed Vermont’s 1,000th captive insurance company. Cassatt Insurance Group is a group of nine independent non-profit hospitals in southeastern Pennsylvania that share risk in providing medical liability coverage for 1,200 physicians.
Cassatt President and CEO Eric W. Dethlefs said Vermont was an easy choice.
“We know how important it is to be in an environment that has an established track record with proven experience,” he said, “so when we compared experience, governmental support and its long-standing tradition of quality regulation, we knew Vermont was the place to be.”
The governor said the captive industry is an example of a public-private partnership that has created huge dividends for Vermont’s economy.
“The captive insurance industry has generated almost $350 million in direct taxes and fees to Vermont’s coffers since its inception in 1981,” Shumlin said, “It is exactly the type of industry that is a priority of my administration. It creates high paying jobs, has minimal impact on our environment, creates tourist traffic and generates much needed tax revenue.”
DFR Commissioner Susan Donegan agreed and noted that this is a milestone in the state’s financial services history.
“Vermont’s captive insurance law has been called the ‘gold standard’ by trade press for its consistency in keeping pace with the changing needs of the industry over the past 32 years and it has been used by other domiciles as a model of regulation,” she said, “Vermont is proud of its reputation in the captive world and we’re happy to welcome Cassatt to the Vermont captive family.”
Captive insurance is a regulated form of self-insurance created by companies or groups of companies as an alternative to traditional insurance and is designed to better manage their own risk. Vermont’s captive insurance industry employs more than 1,400 people in full- and part-time positions and is the largest captive insurance domicile in the U.S. and the third largest in the world.