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Insurance Commissioner Andrew N. Mais announced the State has seen significant growth as a domicile or legal residence for Captive Insurance Companies. The department approved six new captive insurance companies, including five pure captives and one special purpose financial vehicle captive in 2020.

According to Commissioner Mais, the significant growth is due to the captive division’s outreach initiative to expand Connecticut’s presence and reputation as a domestic captive domicile.

“Given the difficult year we all experienced, 2020 proved to be a growth year for captives,” said Commissioner Mais. “We especially appreciate the business owners who trusted Connecticut to domicile their captive insurance companies here and are looking forward to continued growth this year.”

Captive insurance is a flexible tool for insureds to fill gaps in coverage when commercial markets are unavailable or not affordable. Captive coverage can be an important part of a well-designed risk management plan. Accountants typically understand the importance of financial planning. Those accountants who understand their client’s business needs are uniquely positioned to recommend starting a captive.

With the support of the Connecticut Captive Insurance Association (CCIA) and the Connecticut Society of CPAs (CTCPA) in developing an outreach plan, the department and the National Network of Accountants (NNA) conducted education outreach to accountants on the benefits of captive insurance for their clients. Those collaborative efforts are credited for the captive insurance growth last year.

“Our long-term goal is for Connecticut to continue to grow its presence as one of the nation’s most attractive and well-respected states in which businesses can domicile their captive insurance companies,” said Commissioner Mais.

Information on how to form a captive insurance company in Connecticut is available on the Insurance Department’s Captive Insurance Regulation web page.