Connecticut sees captive application boost in wake of new law
Barely a month has passed since Connecticut passed new captive insurance legislation, and already there has been increased interest in the state as a captive insurance domicile.
This is according to Thomas F.X. Hodson, who heads JLT Insurance Management’s Connecticut operations.
Governor Dannel P. Malloy signed PA 14-6 into law last month. The bill contains significant enhancements updating Connecticut captive laws.
“In conversations I’ve had with the state insurance department, I know of eight new applications in various stages of review.” says Hodson.
He continues, “I was told that the publicity the new law has received is directly responsible for some of these applications. However, PA 14-6 is not the only reason. Connecticut has long been an insurance innovator, and the new law is in keeping with this reputation.”
Among other provisions, PA 14-6:
· Makes it easier for companies to re-domesticate their captives to Connecticut through a streamlined procedure;
· Significantly expands the types of coverage branch captives can write;
· Gives the insurance commissioner discretionary authority to allow captives that are re-domesticating to Connecticut to take credit for reinsurance not otherwise eligible under state law; and
· Clarifies the applicability of the state’s Holding Company Act, narrowing its impact on captives.