UVM Health Network Captive Redomiciles from Bermuda to Vermont
October 17, 2019
Another major organization, the University of Vermont (UVM) Health Network in Burlington, has redomiciled its medical malpractice captive insurer, VMC Indemnity Company, Ltd. (VMCIC), from Bermuda to Vermont.
"Our analysis showed that relocating to Vermont had become less expensive than previously anticipated and an attractive option—one that we are happy to embrace," Dr. John Brumsted, president and CEO of the UVM Health Network and a VMCIC board member, said in a statement.
"We are pleased to be able to do business locally and be part of Vermont's world-class captive insurance industry," Dr. Brumsted added.
The relocation of the captive, which was first licensed in Bermuda in 1993, was applauded by Vermont Governor Phil Scott.
"It's great to see the UVM Health Network take this step and to count them among the growing list of academic medical center and health care captive organizations located in Vermont," Governor Scott said in a statement.
The UVM Health Network joins a growing number of organizations that have moved their captives to Vermont from other domiciles. Currently, 94 captives, said David Provost, Vermont's deputy commissioner of captive insurance in Montpelier, have relocated to Vermont since the state became a captive domicile following the passage of authorizing legislation in 1981. That is far more than any other domestic domicile.
Organizations, Mr. Provost said in an earlier interview with Captive.com, "Move their captives here for the stability we have here. Vermont is known as a long-term domicile. We are not going anywhere. We don't change with political winds. It is a big deal that Vermont has remained a solid, stable captive domicile."
The healthcare industry is a major source of the new captives being set up in Vermont. In 2018, for example, 6 of the 25 new captives licensed in 2018 in Vermont were set up by organizations in the healthcare industry.
"The continued growth of hospitals and doctors' groups forming Vermont captives for medical professional liability coverage has been very positive," Ian Davis, Vermont's director of financial services, said in a statement at the time Vermont released its 2018 captive formations statistics.
At the end of 2018, Vermont had 580 captives, making it, by far, the largest domestic domicile.
October 17, 2019