Commissioner Andrew Mais of the Connecticut Insurance Department (CID) has announced a significant milestone for the state’s captive insurance sector in 2023. The sector experienced a remarkable 37% growth, marked by the addition of 10 new captive insurers, indicating a 22% increase, and an impressive 108% surge with 13 new cell risk-bearing entities. This achievement, resulting in a total of 78 net gain of captive entities, marks the fourth consecutive year of sustained net growth since 2020.
Connecticut’s approvals include the establishment of new insurers and the relocation of existing captive insurers to the state. The state has seen a notable increase in new businesses choosing Connecticut for their captive programs this year. These captive entities predominantly issue policies to cover risks retained by businesses, addressing challenges such as commercial auto liability, general liability, workers’ compensation, contractual liability, climate risk, business interruption, mechanical breakdown, employment practices liability, reputation risk, cyber-attacks, and other ESG risks.
Commissioner Mais attributes this growth to recent pro-captive legislations, increased staffing, internal support, and collaborations across the state. Connecticut continues to attract global captive insurers and service providers, solidifying its position as a premier domicile and reinforcing its title as the insurance capital of the world.
Fenhua Liu, Assistant Deputy Commissioner of the CID Captive Insurance Division, affirms that under Commissioner Mais’s leadership, they will continue to employ a risk and principles-based approach, providing cost-efficient and flexible regulations to ensure the long-term success of captive insurers.
Connecticut has received prestigious awards, including being named Captive Domicile of the Year for 2022 and 2023 by Captive Review in the category of written premiums under $5 billion. The state has also been recognized as the fastest-growing captive domicile in Captive Review’s World Domicile Update for 2020, 2021, and 2022. Captive International honored Connecticut as the Domicile of the Year in 2022 and a top-three Domicile of the Year in 2021 and 2023. Fenhua Liu was featured on Captive Review’s Power 50 list in 2023, acknowledging her influential role in the captive insurance sector.
To further promote and celebrate these achievements, the Connecticut Insurance Department, in collaboration with various organizations, will host the inaugural Connecticut Captive Insurance Forum on April 16, 2024. This event aims to benefit all captive stakeholders through networking and educational opportunities.