December 21, 2015
Sponsored Cell Captive to Provide Solutions for Customers
Zurich North America has selected Vermont as the domicile for a new sponsored cell captive company, according to the Vermont Department of Financial Regulation. The captive, Hoplite Reinsurance Company of Vermont, is Vermont's 1,052nd license.
"We are delighted that Zurich has chosen to open their captive insurance company in Vermont," said Governor Peter Shumlin. "Their strong reputation in the insurance industry is a terrific addition to Vermont's world-class captive insurance companies."
"Setting up a sponsored cell captive insurance company in Vermont provides a great opportunity for Zurich to deliver additional loss-sensitive solutions to our customers," said Steve Bauman, senior vice president and head of Captive Services, Global Corporate in North America. "Vermont is the leading on-shore domicile, and its reputation as the 'Gold Standard' makes it an attractive choice for us to deliver this product."
Sponsored cell captive insurance companies provide the sponsor of the captive program a great deal of flexibility by allowing for individual cells that can be customized to each participant. This type of structure is growing in popularity because of the options and customization it provides. It can also be a good way for smaller companies to access the captive insurance marketplace, because typically the startup cost is less than establishing their own captive.
"Zurich is one of the leaders in the insurance industry and in the captive industry through its broad spectrum of captive services and loss-sensitive solutions," said Dan Towle, Director of Financial Services for the State of Vermont. "It is a feather in Vermont's cap when a leading company in the insurance industry choses your state for its domicile."
Captive insurance is a regulated form of self-insurance that has existed since the 1960's and has been a part of the Vermont insurance industry since 1981, when Vermont passed the Special Insurer Act. Captive insurance companies are formed by companies or groups of companies as a form of alternative insurance to better manage their own risk. Captives are typically used for corporate lines of insurance such as property, general liability, products liability or professional liability. Growth sectors of the captive insurance industry include professional medical malpractice coverage for doctors and hospitals, and the continued trend of small and mid-sized companies forming captive insurance companies.
For more information on Vermont's captive industry, visit www.vermontcaptive.com, call Dan Towle at 802-828-5232 or email firstname.lastname@example.org.
Media Contact: David Hilgen, Zurich North America, 212.871.1673 desk, 908.303.4002 cell, email@example.com
Source: Agency of Commerce and Community Development
Last Updated at: December 21, 2015 16:10:34