Vermont Secretary of State Jim Condos and Department of Financial Regulation Commissioner Michael Pieciak are working together to launch a pilot that would allow captive insurance companies to register with the secretary of state's office using private blockchain technology.
Captive insurance companies are those owned by the insured, meaning the insured stake their own capital to invest in the insurance company, control the company, and receive any profits made by it.
On January 9, the agencies signed a memorandum of understanding outlining the responsibilities of each agency for the pilot. On January 10, the agencies co-published a request for information (RFI) to "obtain information and cost estimates." These bids mark the start of a pilot allowing captive insurance companies in Vermont to use blockchain technology to register with and report documents to the secretary of state.
More specifically, the agencies are using the RFI to collect information in five areas:
If successful, the pilot could prove beneficial to both agencies, allowing them to more easily, accurately, and securely access and share relevant documentation, as each agency plays a part in the regulation of captive insurance companies. The Office of the Vermont Secretary of the State is responsible for the registration of captive insurance companies, while the Vermont Department of Financial Regulation is responsible for their "general supervision and regulation."
RFI responses are due by February 14, 2019.