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VT Leads the Country in Captive Insurance

South Burlington -- August 12, 2009

More than a thousand people from 43 states and nine countries are in Vermont this week for the annual conference of an industry you may never have heard of -- captive insurance.

Captive insurance is a regulated form of self insurance, which lets businesses control their own risk management and often save money in the process.

Vermont leads the country in captive insurance, with more than 550 companies licensed here. State officials say the industry is often counter-cyclical -- doing well when the economy is down. The number of captives formed this year has exceeded the number formed last year.

Dan Towle / Director of financial services for agency of commerce and economic development:

"First of all, there's about 1400 full and part-time jobs, they're high-paying jobs, it's a clean industry, it's a good fit for Vermont. there's also tax revenues derived from the companies that form here, and that's not insignificant at all, i believe it was over $22 million last year which is a pretty significant revenue...//... and also all these companies are required by law to hold their annual board meeting in the state so there's a lot of nice tourist activity to that as well."

This year's conference features 110 exhibitions, 18 seminars and 60 guest speakers.