The Connecticut Department of Insurance approved nine new captive insurers in 2024, reflecting a 17% increase from the previous year, along with 17 new captive protected cells, Insurance Commissioner Andrew N. Mais (pictured above) announced.
This marks the fifth consecutive year of captive insurance growth in the state.
“Connecticut’s strong insurance industry ecosystem, timely updated captive legislation and highly skilled professional workforce sets the ‘insurance capital’ apart from other domiciles,” Mais said.
The department reported a 64% increase in protected cell formations compared to 2023.
In a report from AM Best, Mais noted that Connecticut’s insurance ecosystem, recent legislative updates, and industry expertise continue to differentiate the state from other captive domiciles.
Legislative changes in recent years have allowed captives to incorporate parametric contracts, revised rules for dormant captives, and expanded flexibility for protected cell structures.
Further regulatory updates in 2024 enabled protected cells within sponsored captive structures to be converted into standalone captive entities without impacting their assets, rights, benefits, obligations, or liabilities. These changes are designed to offer more flexibility for businesses managing evolving risk needs.
Fenhua Liu, director of the Connecticut Insurance Department’s captive division, said that the revisions provide greater clarity for captive owners considering structural changes.
“It gives (businesses) more flexibility and more comfort,” Liu said. “Then they are encouraged to form more sponsored captives if they need it or add more cells if they need it.”
2025 has been described to be the year when captives will disrupt the industry – with Alera Group senior vice president and national captive practice leader Prabal Lakhanpal highlighting how economic shifts have fueled this growth.
Elsewhere, the Vermont Department of Economic Development (DED) has announced that captive insurance in Vermont saw significant growth in 2024, reaching a spot on the top 10 highest years of growth since the captive enabling legislation in 1981.
What are your thoughts on this story? Please feel free to share your comments below.
