Connecticut Governor Ned Lamont has signed Public Act No. 24-138, a new law designed to provide greater flexibility and support for the state's captive insurance industry. The legislation, which will take effect on 1 October, aims to create a more business-friendly regulatory environment that encourages innovation and growth in the sector. Andrew Mais, commissioner at the Connecticut Insurance Department, praises the new law, stating: “With the signing of Public Act No. 24-138, Connecticut continues to uphold a supportive and competitive landscape for captive insurance. “We recognise the evolving insurance and risk management needs of businesses, and our recent legislative advancements, combined with the state's expertise and innovation, reinforce Connecticut's position as a premier domicile for captives." The new legislation allows protected cells within sponsored captive insurance companies to convert into new captives, such as sponsored captives, special purpose financial captives, pure captives, risk retention groups, agency captives, industrial insured captives, and association captives. This conversion process ensures that the assets, rights, benefits, obligations, and liabilities of the protected cells remain unaffected, thereby meeting the changing risk management and insurance needs of businesses. Connecticut State Senator Jorge Cabrera, co-chair of the Insurance and Real Estate Committee, highlights the broader benefits of the law, noting: "This new law allows our growing captive insurance industry to expand even more. Other sections of the law strengthen the Insurance Department's response to and investigation of violations of state insurance laws, as well as redefine 'small employer' for insurance purposes. “These are positive advancements for Connecticut, where we have the highest concentration of insurance jobs in the nation." Meanwhile, Connecticut State Representative Kerry Wood, also co-chair of the Insurance and Real Estate Committee, adds, "I’m proud to be part of Connecticut’s unique environment where the legislature, regulators, and industry are working cohesively to create a strong and robust atmosphere for the captive insurance industry to thrive. “Our committee has been actively engaged in encouraging innovation and growth in this sector, which is a result of this legislation." In 2023, Connecticut added 10 new captive insurers and 13 new segregated cell companies, bringing the total number of captive insurance entities in the state to 78.
