The Connecticut Insurance Department has announced a 59 per cent jump in captive insurance companies in 2021, with 13 new insurers being approved by the department.
The licences granted by the state were for new captive formations and the re-domestication of some captives to Connecticut from other domicile states.?
Since licensing the first captive in 2012, Connecticut has seen a growth in the number of captives over the past two years, from 16 to 35 in 2021.
Currently, one-third of all Connecticut captives are owned by Fortune 500 companies.
These newly licensed captive insurers primarily cover risks where insurance is not available in the commercial market or is too expensive. Some companies increased self-retained risks and put them in their newly formed captive.
Commissioner Andrew N. Mais comments: “This was another exceptional growth year for Connecticut-domiciled captives as businesses leveraged them to strengthen their insurance coverage, fill gaps and reduce risk.”
The record growth reflects the growing awareness of the high value a captive domiciled in Connecticut can provide, in large part due to the concerted efforts of the Department and various stakeholders, according to the commissioner.
Fenhua Liu, assistant deputy commissioner of the Captive Insurance Division, adds: “Captive insurers are growing in popularity. They allow businesses of all disciplines to control costs while better protecting their assets and reinvesting those savings back into their business operations. When a business can better control its costs, it can better control its destiny.”
