Some good news for Vermont was announced right before the New Year a week ago: the University of Vermont Health Network will move its captive from Bermuda to Vermont!
The network’s Board of Directors unanimously approved the move of VMC Indemnity Co. Ltd., a captive that provides medical malpractice insurance coverage, according to a statement by the six-hospital system issued Friday. UVM Health Network established their captive back in the late 80’s, when Vermont’s captive insurance industry was just getting off the ground, and one of the few domiciles that made sense for many healthcare captives was Bermuda.
A nonprofit corporation will be established to become the network’s captive insurer and it will seek approval from the Internal Revenue Service to operate as a tax-exempt organization. The UVM healthcare system has more than 1,000 physicians and 2,000 nurses and other clinicians in Vermont and New York.
Needless to say, we are very pleased to have VMC Indemnity redomesticate to Vermont!
I just wanted to wish all of you Happy Holidays as we head out of 2017 and into 2018. It’s been another busy years in captives, that included a horrific hurricane season, the decision of the Avrahami case on 831(b)s, the specter of continued cyber security issues with the hacking of Equifax (among others), and the soon-to-be-passed Tax Reform bill – all of which impact our industry.
That being said, captive insurance is growing and remains a robust part of the world’s risk management sector. Vermont broke through the 1000 captive license mark and looks to add around 25 new captives before year’s end. With challenges and opportunities that lie ahead such as healthcare, drones, (more) cyber risk, and AI (artificial intelligence – get used to it), captives will show how entrepreneurial and innovative our industry can be!
Thank you all for another great year and Happy New Year!
You gotta’ believe… that Santa Clause has a captive. I mean, just look at all his exposures worldwide. You got workers comp (oy, the elves!), stop-loss (again those pesky elves), liability (its icy up there you know and not everyone has a welcoming chimney), product warranty (they don’t build them like they used to), and throw in a little weather related cat bond, and you have the full boat (or sleigh as it might be).
And, of course, where else would he domicile Rudolf Red Nose Insurance, but in the domicile that most resembles his organization – Vermont. Efficient, honest, professional, and of course, cold this time of year.
Thank you all very much, and I hope you all have Happy Holidays and a wonderful New Year – see you in 2017!