Connecticut’s Insurance Commissioner Andrew Mais has revealed the state saw significant growth within its captive sector in 2020 after approving six new captive insurance companies.
Of the six, five were pure captives and one was a special purpose financial vehicle captive.
Commissioner Mais says the growth is due to the captive division’s outreach initiative to expand Connecticut’s presence and reputation as a domestic captive domicile.
“Given the difficult year we all experienced, 2020 proved to be a growth year for captives. We especially appreciate the business owners who trusted Connecticut to domicile their captive insurance companies here and are looking forward to continued growth this year,” he explains.
Last year, the insurance department announced it would be partnering with accounting firms in the state to expand its presence in the insurance market.
As part of the outreach plan, the Connecticut Captive Insurance Association (CCIA) and the Connecticut Society of CPAs (CTCPA) supported the department and the National Network of Accountants (NNA) to conduct educational outreach to accountants on the benefits of captive insurance for their clients.
Commenting on this, Mais notes: “Our long-term goal is for Connecticut to continue to grow its presence as one of the nation’s most attractive and well-respected states in which businesses can domicile their captive insurance companies.”
In January, the Connecticut Insurance Department drafted a proposal on an act concerning captive insurance companies for the 2021 session.
The proposed legislation was set to help expand and grow the captive insurance industry in Connecticut. Governor Lamont included a projected $7.5 million in new revenue for the state general fund in the fiscal year 2021 to 2022.
