Connecticut has seen an increase in captive applications since it passed new legislation.
The state’s insurance department is considering eight captive applications, according to Thomas Hodson, head of JLT Insurance Management’s Connecticut operations, and “the new law is directly responsible for some of these applications”.
The new law, PA 14-6, was passed by Governer Dannel Malloy in May.
Some of the revisions include an expansion of the type of coverage branch captives can write and a clear applicability of the state’s Holding Company Act, narrowing the impact on captives.
Under the new legislation, companies can re-domesticate their captives to Connecticut and the insurance commissioner has discretionary authority to allow captives relocating to Connecticut to take credit for reinsurance not otherwise eligible under state law.
Hodson added: “Connecticut has long been an insurance innovator, and the new law is in keeping with this reputation.”
