While many of you shortly head to CICA, VCIA has a doubleheader on its schedule. Angie and I will be in attendance in Tucson, and then just a week later I will join VCIA Board Chair Gail Newman, VCIA Legislative Committee Chair Zaw Win and a delegation from VCIA’s federal lobbying firm McIntyre + Lemon to go to Washington D.C. for VCIA “Hill Day,” a renewed, annual event where VCIA educates policymakers on the critical role captives play in the American economy.
There’s much activity coming out of Trump administration, some of which—like the idea that the IRS workforce might be cut in half—may positively or negatively impact the captive industry. There’s no better time than to meet federal decision makers and champion the captive industry.
We are going to D.C. equipped with data that backs up our strong lobbying efforts on behalf of the Vermont and nationwide captive industries. See our fact sheets below for more information.
Planned Meetings with Vermont's Congressional Delegation
The VCIA Hill Day delegation has a two-pronged approach. The first will be to meet with Vermont's congressional representatives, who have historically championed captive insurance legislation. Vermont, as the largest U.S. domicile for captive insurance, has developed a sophisticated regulatory framework that serves as a model nationwide.
During these upcoming meetings, VCIA representatives plan to highlight recent industry growth statistics, emphasizing how Vermont-domiciled captives provide essential risk management solutions for businesses of all sizes. The delegation will share specific examples of how captives have helped organizations navigate complex risks, particularly during periods of hardening commercial insurance markets.
The Vermont Congressional Delegation all support Vermont captive industry. In fact, Senator Peter Welch (D-VT) was involved in crafting the original and visionary Vermont captive legislation in 1981. Our Hill Day team will reiterate Vermont's leadership position and the substantial economic benefits captives bring to the state through job creation, tax revenue, and professional services.
Engaging with Key Congressional Committees
Beyond Vermont's representatives, the VCIA delegation has meeting arrangements with members of the House Financial Services Committee and the Senate Banking Committee, which hold jurisdiction over insurance-related legislation. Particularly, we will meet with staffers from Senator Tim Scott's (R-SC) office. Senator Scott is Chair of the Banking Housing & Urban Affairs Committee. This Senate Banking Committee has jurisdiction over matters related to banks and banking, price controls, deposit insurance, export promotion and controls, federal monetary policy, financial aid to commerce and industry, issuance of redemption of notes, currency and coinage, public and private housing, urban development, mass transit, and government contracts.
The Subcommittee on Housing and Insurance operates within the Senate Banking Committee and it has a direct impact on the American captive markets. The VCIA Hill Day team will meet the chair of this subcommittee Representative Mike Flood (R-NE) and explain that the captive industry is a healthy supplement to the commercial markets. In all of this, our delegation will provide lawmakers and their staffers with concrete examples of how captives help businesses manage specialized risks while maintaining appropriate financial safeguards.
Why Advocacy Matters for the Captive Industry
Let's remember why we're doing this. We hear constantly from our members that legislative advocacy is top priority when it comes to their member value proposition. VCIA remains an essential actor in protecting and advancing the captive insurance industry for several compelling reasons:
1. Regulatory Clarity: Proactive engagement helps prevent unintended regulatory consequences that could limit captives' effectiveness as risk management tools.
2. Education: Many lawmakers have limited familiarity with captive insurance. These meetings provide an opportunity to explain how captives differ from commercial insurers and why they require tailored regulatory approaches.
3. Economic Impact: Captive insurance represents a significant economic driver, not just in Vermont but across the country. The industry creates high-paying jobs, generates tax revenue, and helps businesses manage risks that might otherwise make certain operations unviable.
4. Risk Management Innovation: Advocacy ensures policymakers understand how captives foster innovation in risk management, allowing businesses to address emerging risks more effectively than through traditional insurance markets alone.
The VCIA delegation will emphasize that sensible regulation of captives supports broader economic resilience, enabling businesses to withstand unexpected shocks while protecting jobs and investments.
Looking Forward
As the delegation prepares for its Washington mission, several areas have emerged as priorities for the advocacy efforts. These include monitoring potential tax policy changes that could affect captives, promoting regulatory harmonization across states, and ensuring international regulatory developments recognize the legitimate role of captives in global risk management.
VCIA leadership emphasizes that advocacy isn't just a yearly event but a continuous process of engagement with policymakers. The association encourages all stakeholders in the captive industry to participate in education and advocacy efforts, ensuring the industry's voice is heard in policy discussions that could impact its future.
For businesses utilizing or considering captive structures, this advocacy work provides critical protection of their ability to manage risks effectively and efficiently—ultimately supporting business stability and growth across the American economy.
This important trip embodies the captive legislative advocacy value that is a foundational pillar in VCIA’s new strategic mission. Members can expect a detailed report on our findings once we complete our mission to the nation’s capital.
Stay tuned for Hill Day preview Part II next week, when we dive into some federal bills that could impact captives and might be voted on in the 119th US Congress.
Sincerely,
Kevin
VCIA CEO
802.658.8242 ext. 1
