Connecticut Opens New Era in Insurance

As of July 1st, businesses are able to develop, license and operate captive insurance companies in the Nutmeg State. The first captive insurance company is expected to be licensed shortly.

Tom Hodson, president of the Connecticut Captive Insurance Association said: “A cornerstone of Governor Dannell Malloy’s economic development initiative is now in effect with this law coming on line. Connecticut not only joins a number of other states serving as a home to captive insurance companies, but it must be looked at seriously given the significant insurance infrastructure already present in the state, the sizable commercial economic base present here, as well as the state’s convenient location.”

Captive insurance companies are a type of self-insurance, where commercial entities set up their own insurance companies rather than relying upon, in whole or part, traditional insurance companies. Carriers often assist captives in formation, risk-spreading and claims management.

The new insurance law, Section 38a-91aa through 91tt of the Connecticut General Statutes, will allow a full range of corporate entities to take on more control of their insurance programs while maintaining prudent financial security for their risks. “Captives are a well-accepted way of managing and financing risk in the United States and abroad. Governor Malloy’s administration is making it easy to take advantage of these important risk management facilities by both domestic Connecticut companies and those from outside the state who will find a positive reception and good regulatory environment for their captives,” Hodson said.

Hodson would not be surprised to see six or more captives licensed before year’s end, and even more economic development through the growth of captive managers, brokers, auditors, actuaries and law firms which specialize in this area of insurance.

About the Connecticut Captive Insurance Association

The Connecticut Captive Insurance Association is a nonprofit trade association formed to support the growth of the captive insurance market in Connecticut.

The mission of the CCIA is:

• To promote the interests of the captive insurance industry;
• To provide a communication interface for members and other groups;
• To establish policy positions on major issues that affect its members;
• To represent the interests of the captive insurance industry before federal, state and local government bodies;
• To provide its members with opportunities for education.

As with most associations, CCIA’s efforts are on behalf of the industry and focused on improving and enhancing the captive market as a whole, and do not expressly reflect the views of any specific member.