Connecticut advances captive reform with new legislation

Connecticut’s latest captive insurance bill, House Bill 6433 (HB 6433), has cleared the State Senate unanimously just before the close of the 2025 legislative session.

The legislation now awaits the governor’s review and signature.

This marks the fifth consecutive year that the Connecticut Captive Insurance Association, the Connecticut Insurance Department and the General Assembly’s Insurance Committee have collaborated to enact reforms that enhance the state’s captive insurance statutes.

House Bill 6433 introduces a range of updates to the regulatory framework governing captive insurers.

The bill allows a captive insurer domiciled in Connecticut, with prior written approval from the insurance commissioner, to convert into a protected cell.

It also permits sponsored captive insurers, with consent from certain relevant parties and the commissioner, to transfer or assign a protected cell to another sponsored captive or to a special purpose financial insurance company.

Additionally, the legislation gives the insurance commissioner authority to separate any insolvent protected cell from a sponsored captive and enable its conversion into a new protected cell or a standalone captive insurer.