Connecticut licensed one new captive insurance company last year, according to figures from the Connecticut Insurance Department (CID).
The CID figures also show that one captive closed operations, meaning as of 31 December 2017, there were 14 captives domiciled in the state—11 pure, two sponsored and one risk retention group.
Almost $365 million of premiums were underwritten by Connecticut-domiciled captives last year, with the insurers covering a wide variety of traditional and non-traditional risks.
The Nutmeg State amended its captive laws in 2017 with the introduction of Public Act 17-198 which established ‘dormant captive insurers’ and the lowest domicile minimum surplus requirement for sponsored captives, as well as allowing discretion on capital and paid-in surplus.
According to CID captive insurance programme manager, Janet Grace: “Connecticut has become known for attracting top-notch innovative captive insurance companies and we continue to focus our captive insurance efforts on risk management solutions that help Connecticut businesses compete effectively.”
She added: “Connecticut has set its sight on second movers to the captive market including middle market manufacturers and health care centers, key sectors of Connecticut’s markets.”
“We are committed to going back to the original and really first-class idea behind the 831(b) concept and want the reputation of well-intended small company captive formations turned around and available as a tool for our ‘middle market’ insurance risks.”