Steady by design
Fenhua Liu (pictured) says Connecticut’s steady regulatory environment, deep industry expertise and focus on responsiveness have positioned the state for continued success in the captive insurance market.
Connecticut’s recognition as Captive domicile of the year – less than $5 bn gross written premium at the Captive Review US Awards reflects years of intentional strategic development and a sustained focus to cultivating a strong, forward-looking captive insurance market, according to Fenhua Liu, assistant deputy commissioner and director of the captive insurance division at the Connecticut Insurance Department.
She said the award reflects Connecticut's continued evolution as a leading captive domicile, built on regulatory expertise, strong industry partnerships and a commitment to fostering an environment where captives can thrive.
Liu added that insurance commissioner Josh Hershman's leadership builds on Connecticut's long-standing approach to responsive, forward-looking captive oversight.
One of Hershman’s early initiatives has been the launch of an updated captive division website designed to improve transparency, accessibility and clarity throughout Connecticut's captive licensing process. The site includes a guided eligibility screening tool that helps prospective applicants assess whether a proposed captive aligns with Connecticut's regulatory framework before beginning the formal application process.
Updated resources, improved navigation and new service-level objectives also provide greater transparency around licensing requirements and expected review timelines. “The industry expects regulatory clarity and consistency,” Liu said, adding that the initiative reinforces the division's commitment to providing clear guidance and responsive service.
Connecticut's well-established captive insurance ecosystem is another competitive advantage.. Liu highlighted strong partnerships within the state and across the wider industry, a supportive legislative environment and a business-friendly climate that supports captive formation and expansion.
She also cited Connecticut's competitive fee structure, premium tax credits and recent legislative updates that modernize the captive framework while providing greater flexibility for evolving captive structures.Liu said Connecticut continues to work closely with captive owners, service providers and policymakers to ensure the domicile evolves with changing market needs while preserving the stability and responsiveness that distinguish its regulatory approach.
“The industry expects regulatory clarity and consistency.”
She also pointed to Connecticut’s work addressing insurance challenges facing non-profit organisations. The state has established a working group exploring how captives and alternative risk management solutions can help health and human service organisations facing challenges obtaining affordable liability coverage. Supported by recent legislative efforts and the Department’s request for proposals (RFP) process, the initiative is focused on identifying practical risk-management solutions that can help strengthen the availability and affordability of coverage for these critical organisations.
Liu said the Department’s focus on efficiency, technology and modernisation demonstrates Connecticut’s ability to adapt to changing market needs while providing clear expectations.
She also highlighted the annual Connecticut Captive Insurance Forum, launched by the Department in partnership with InsurTech Hartford and the Connecticut Captive Insurance Association. Over the past three years, the forum has become an important platform for bringing senior industry leaders and decision-makers to Connecticut.
Liu noted the Department alsoconvenes broader industry conversations through events such as the upcoming Insuring the Future summit, reinforcing Connecticut's role as a leader for insurance leadership and innovation.
Looking ahead to 2027, Liu said Connecticut is well positioned to build on its momentum through continued investment in technology, modernization and sound regulatory oversight.She said the state’s established captive ecosystem, combined with an ongoing focus on technology, modernisation and sound oversight, will help sustain its leadership as a premier captive domicile.
Liu emphasised that innovation must be paired with thoughtful oversight. She said the Department's principles-based and risk-focused regulatory approach supports evolving captive structures while maintaining strong protections for the broader insurance market. She also pointed to the growing use of sponsored captives, which allow commercial insurers to provide fronting services while giving organisations greater control over their risks. She said these arrangements illustrate how captives and traditional insurers can work together to expand risk-management options.
“Our goal is to provide a regulatory environment that is responsive, transparent and grounded in sound oversight while supporting the continued growth and innovation of the captive industry," Liu said.
Fenhua Liu is assistant deputy commissioner and director of the captive division at the Connecticut Insurance Department. For inquiries, contact her at fenhua.liu@ct.gov
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