Though Vermont Gov. Jim Douglas has indicated he won't seek re-election next year, his decision not to seek a fifth two-year term isn't expected to disrupt the state's captive insurance industry.

Captive industry insiders note that the industry historically has enjoyed support from governors and legislators regardless of political party in Vermont.

“This isn't the first time in our history that we've gone through changes in governor,” said Nancy Gray, regional managing director at Aon Global Insurance Managers in Burlington, Vt. “We've gone through it several times and we've always had the support of the governor regardless of political party.”

Michael Bemi, president and chief executive officer of the Vermont-chartered National Catholic Risk Retention Group Inc. and chairman of the Vermont Captive Insurance Assn., agreed that the Republican governor's departure isn't likely to have an impact on Vermont's captive industry, even though Gov. Douglas will be missed on a personal basis.

“I think probably not. And I don't mean that in any regard to be derogatory of the governor himself,” Mr. Bemi said, “because he's been a pleasure to work with and he's been very supportive of the captive industry in Vermont.”

“But the industry receives so much support from the state government, and has from various governors and legislators of either party. The industry's importance to the state is well-recognized,” Mr. Bemi said.

Gov. Douglas “has been a great supporter of the industry, and we expect the next governor to be a supporter of captives,” Ms. Gray said.