Start a Connecticut Captive Insurance Company!
Connecticut is one of the fastest growing and most dynamic domiciles to start a new captive insurance company in. The state has deep historical roots in the insurance industry and a longstanding tradition of providing solid regulatory support for the captive insurance industry.
Many companies have realized the advantages of captive insurance operations licensed and domiciled in Connecticut as recognized by the state being:
- Ranked as the fastest growing domicile with top growth in the world (#1 in % growth in formations & #1 in net % formation growth) in 2021 with an over 38% increase in new captive formations
- Named 2022 “U.S. Captive Domicile of the Year” by Captive Review for U.S. domicile states with less than $5b in gross written premiums) by
- Awarded “Captive Domicile of the Year” in the 2022 U.S. Awards by Captive International
- Having over 1/3 of all Connecticut captives owned by Fortune 500 companies
Learn more about how to start a captive insurance company in Connecticut by visiting the Captive Insurance Division of theConnecticut Insurance Department
Resources for Starting a Connecticut Captive Insurance Company
Benefits of Forming a Captive Insurance Company in Connecticut
Captive insurance refers to an entity established to provide insurance to a company and its affiliates, a group or associations. A captive insurance company represents an option for many entities that that want to take financial control and manage risks by underwriting their own insurance rather than paying premiums to third-party insurers. Advantages include:
- Reduced operating costs
- Improved cash flow
- Increased coverage and capacity
- Investment income to fund losses
- Direct access to wholesale reinsurance markets
- Funding and underwriting flexibility
- Greater control over claims
- Smaller deductibles for operating units
- Additional negotiating leverage for underwriters
- Incentives for loss control
- Tremendous flexibility in managing risk
Types of Captives that can be licensed in Connecticut
- Pure Captive: Any company that insures risks of its parent and affiliated companies or controlled unaffiliated business.
- Group Captive: Any domestic insurance company licensed under the provisions of this article for the purpose of making insurance and reinsurance.
- Association Captives: Any company that insures risks of the member organizations of the association, and their affiliated companies
- Industrial Captives: Any company that insures risks of the industrial insured that comprise the industrial insured group, and their affiliated companies.
- Branch Captives: Any alien captive licensed by the commissioner to transact the business of insurance through a business with its principal place of business in the District
- Rental Captives: A captive insurer formed to enter into contractual agreements with policyholders or associations to offer some or all of the benefits of a program of captive insurance and that only insures risks of the policyholders or associations
- Protected Cell Captives: Also known as segregated cell captives. Protected Cell Captives are similar to rental captives except that the assets of each user are protected from one another by law.
- Micro Captives: A micro captive is a captive insurance company that has an annual written premium of less than $1.2 million.
- Risk Retention Groups: Captive insurer organized under 15 U.S.C. §§3901-02, as a stock or mutual corporation, a reciprocal or other limited liability entity.
