Connecticut licenses one new captive; expects to redomicile more healthcare captives
The State of Connecticut licensed one new captive insurer and had one licensed captive insurer that never actively wrote business shut its operation, bringing the total number of captives to 14.
These 14 captives include 11 pure captives, two sponsored and one risk retention group.
“Connecticut has become known for attracting top-notch innovative captive insurance companies and we continue to focus our captive insurance efforts on risk management solutions that help CT businesses compete effectively,” said Janet Grace, program manager of captive insurance at Connecticut Insurance Department
Grace expects Connecticut to ‘bring home’ many captives owned by Connecticut-based health care facilities and physician practices. One such example of this is the state’s first health care liability captive, Keystone Indemnity Company re-domesticated from Vermont to Connecticut.
In 2017, nearly nearly $365,000,000 of premium was underwritten by captives domiciled in Connecticut.
Connecticut’s captive insurers underwrite a variety of traditional and non-traditional risks including casualty, property, medical stop loss, professional liability, flood, and custom coverages.
“We welcome all companies that seek a domicile that offers regulation that is thorough but at every step of the way business-friendly and particularly invite firms looking for regulators with real world experience in alternative and unique risks to consider domiciling in Connecticut,” Grace continued.
“Connecticut has set its sight on second movers to the captive market including middle market manufacturers and health care centers, key sectors of Connecticut’s markets. We are committed to going back to the original and really first-class idea behind the 831(b) concept and want the reputation of well-intended small company captive formations turned around and available as a tool for our “middle market” insurance risks."
In 2017, Connecticut made meaningful change to its captive laws by introducing Public Act 17-198 which allows discretion on capital and paid-in surplus, established the lowest domicile minimum surplus requirement for sponsored captives, and establishes “dormant captive insurers”.