Connecticut celebrates 37% surge in captive sector
Connecticut added 10 new captive insurers and 13 new segregated cell companies in 2023, marking a 37% increase in new registrations and the fourth consecutive year of net growth.
State Insurance Commissioner Andrew Mais said the the addition of 10 new captive insurers was a 22% increase, while the number of new cell risk-bearing entities rose by 108%.
The new registrations brings the total number of captive insurance entities up to 78.
Connecticut's approvals include the establishment of new insurers and the relocation of existing captive insurers to the state. The influx of new businesses choosing Connecticut for their captive programmes has notably increased this year, the state said.
These captives predominantly issue policies to cover risks retained by businesses due to the unavailability or high cost of commercial coverage. Example risks include commercial auto liability, general liability, workers' compensation, contractual liability, climate risk, business interruption, mechanical breakdown, employment practices liability, reputation risk, cyber-attacks, and other ESG risks.
“With recent pro-captive legislations, increased staffing, internal support, and collaborations across the state, Connecticut continues to attract global captive insurers and service providers, further establishing itself as a premier domicile and solidifying our title as the insurance capital of the world," said Mais.
"Under Commissioner Mais's leadership, we will continue to employ a risk and principles-based approach to provide cost-efficient and flexible regulations, ensuring the long-term success of captive insurers", said Fenhua Liu, Assistant Deputy Commissioner of the CID Captive Insurance Division.
Connecticut state Senator Tony Hwang, ranking senator on the Insurance and Real Estate Committee, added: “Connecticut is ‘The Insurance Capital’, and we must continue to do all we can to cultivate and grow good insurance industry jobs in our state. These positive results show us that we need to further step up our efforts to enhance this sector’s steady growth.
"I commend Commissioner Mais and his team on this news and I will continue to pursue policies which catalyse future success stories. Let’s be aggressive and innovative. Let’s keep building upon this good news. The sky is the limit.”
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