David Provost, deputy commissioner of Vermont's Captive Insurance Division tells NU Online News Service that he attributes the upward trend to the fact that more insurance buyers are "realizing that it's just as good to do it yourself. Certainly for any dollars that you're just trading, why not have it in a captive?"

He adds, "Having a captive helps you buy that real insurance you need, maybe at a better price."

Dan Towle, director of Financial Services observes that Vermont continues to see an increasing number of smaller and mid-sized companies "exploring the captive insurance option. This trend exemplifies how Vermont provides a good fit for companies of all sizes."

Captive insurance legislation in Vermont, H438, has passed the House of Representatives and moved on to the Senate. The proposed legislation will allow for the formation of incorporated protected cell companies and expand its cell legislation, providing more options for companies interested in that structure, BISHCA says.

 Vermont is the largest captive insurance domicile in the U.S. and the third largest in the world, with an excess of $25 billion in gross written premium in 2010.