Captives regulator invites offshore captives to relocate to Connecticut
The Connecticut Insurance Department has invited offshore captives to consider relocating to Connecticut.
Janet Grace, programme manager of the captive insurance division at the Connecticut Insurance Department, said: “If your captive is located outside the US, this may be the time to bring it to Connecticut, where you can take advantage of our ‘brain trust’ of captive innovators, who may be able to help you deal with lost revenue at this time of crisis.”
The invitation came as Connecticut’s healthcare facilities suffer from significant daily losses of revenue as they reallocate resources to dealing with the COVID-19 outbreak, according to Michael Maglaras, principal of Michael Maglaras & Company.
Maglaras warned the reallocation of resources was coming at the expense of ambulatory and elective surgery revenue.
Andrew Mais, commissioner of the Connecticut Insurance Department, said: “Healthcare facilities and other businesses in Connecticut are quickly realising that business interruption claims caused by the COVID-19 crisis may be difficult to collect on, unless physical loss or damage to property can be substantiated.”
Property policies written for health care institutions frequently contain broad limitations on business interruption coverage caused by the cascading effect of dealing with the coronavirus and other losses stemming directly from disease contamination, Maglaras explained.
He said his company has been busy liaising with captive owners about how they can use their captives’ existing surplus to augment property coverage availability. “We first encourage health care providers and others to determine the amount of commercial coverage for decontamination costs, communicable disease cleanup, and interruption by communicable disease,” he said.
Captive insurance companies can play a significant role in claim recovery for healthcare facilities, depending upon the amount of the loss and the availability of a captive’s surplus, said Maglaras.