Connecticut Governor Ned Lamont has signed Public Act 23-15 into law.
The legislation, which will become effective from 1 October, aims to bolster captive insurance companies.
The bill was championed by Commissioner Andrew Mais of the Connecticut Insurance Department (CID).
CID says the ‘bill marks a milestone [for Connecticut] in advancing a business-friendly regulatory environment that encourages innovation and supports the growth of captives to provide more options for businesses to manage their risk.’
The legislation will allow captives to accept and transfer risks through parametric contracts. It will also streamline operations for sponsored captives and provide dormancy benefits for captive owners.
Public Act 23-15 builds upon Connecticut’s previous legislative ‘achievements’ from 2022, during which the state implemented other pro-captive legislation.
CID reports a 31 per cent increase in captives in 2022 and is expected to maintain its position as a leading US domicile.
Commissioner Mais comments: “The new legislation, combined with the state's expertise, competence, and innovation, solidifies Connecticut's position as a premier domicile for captives.”
