Connecticut Insurance Department

Connecticut is one of the newer and smaller captive domiciles in the United States, with significant growth lying ahead, state captive experts predict.

Just over a decade ago, Connecticut lawmakers passed legislation authorizing captive formation in the state.

While the number of Connecticut captives—compared to many other domiciles—is small, one-third of the captives are owned by Fortune 500 companies.

Connecticut, which licensed its first captive in 2012, has seen strong growth in its captive count in recent years. At the end of 2023, Connecticut had 53 captives, up from 45 in 2022 and just 16 in 2019.

That high growth, says Connecticut Insurance Commissioner Andrew Mais, is due to several factors.

"Connecticut has everything a captive needs to succeed: a convenient location, thriving ecosystem, modern captive laws, low fees, insurance innovation, and responsive, experienced regulators," Mr. Mais said.

Others also applaud the strength of the Connecticut Insurance Department, which has "displayed excellent leadership, experience and expertise, and a business-friendly attitude towards captive insurers and the industry," said P.J. Cimini, president of the Connecticut Captive Insurance Association.

In addition, Fenhua Liu, assistant deputy commissioner of the Connecticut Insurance Department's Captive Insurance Division, notes that the "department collaborated with Connecticut Insurance Financial Services, Connecticut Captive Insurance Association, Connecticut Society of CPAs, National Network of Accountants, InsurerTech Hartford, and the Connecticut Department of Economic and Community Development in the 'Reimagining Business Insurance' initiative to educate businesses on how captives fill gaps in coverage."

Another attraction is the depth of insurance talent in Connecticut, which for decades has been informally known as an "insurance capital."

"This is an insurance center of excellence," said Stephen DiCenso, past president and current board member of the Connecticut Captive Insurance Association and a principal and consulting actuary with Milliman Inc. in Wakefield, Massachusetts.

Connecticut legislators also have been highly receptive to considering and making changes to the state's captive statute to keep competitive with other states' laws.

"We have worked with legislators to keep the law fresh," said Michael Serricchio, senior vice president with Marsh Captive Solutions in Norwalk, Connecticut.

Indeed, Connecticut lawmakers have made numerous changes to the state's captive statute during the last few years.

For example, legislation passed in 2014 laid down provisions captives have to follow when moving to Connecticut from another domicile, as well as expanded the types of coverage a branch captive can write.

In 2017, lawmakers approved a measure that gave the state insurance commissioner discretion to allow captives—except risk retention groups—to maintain less than the required unimpaired paid-in capital and surplus. The measure also allows pure, sponsored, or industrial insured captives to apply for a certificate of dormancy if they have stopped doing business.

And, in 2018, legislators approved a measure that authorized agency captives as a new captive type.

Legislation passed in 2022 lowered the minimum capital and surplus requirement, gave the insurance commissioner the authority to set a higher required level of capital and surplus to meet policy obligations, allowed the insurance commissioner to waive examinations for pure captives and their branches, and removed the limitation on a captive to only assume reinsurance on risks that such a captive is authorized to write directly. The legislation also removed the "association" entity existence time requirement prior to forming an association captive, adds "controlled unaffiliated business" to sponsored captive participants, and provides a 3-year look-back amnesty program for Connecticut businesses that own captive outside of the state.

Company Contacts

Commissioner, State of Connecticut Insurance Department
Director, Assistant Deputy Commissioner, Captive Insurance Division
(860) 256–7925

Mailing Address:
153 Market St., 6th Fl.
Hartford, CT 06142–0816
(860) 256–7925

Virtual Contact:

Captive Domicile Summary

Connecticut enacted captive legislation effective January 1, 2009. An economic development bill that was passed in 2011 included a provision for a $7,500 tax credit to captives in their first year of operations. In 2012, the state included funding for a new captive insurance regulatory unit at the insurance department.

The Connecticut captive law allows all types of captives. The insurance commissioner has the appropriate level of discretion to regulate captives according to their unique risk profile. For captives other than risk retention groups, the insurance commissioner has the discretion to allow less than the minimum required capital according to the type, volume, and nature of the insurance or reinsurance business.

In addition, the insurance department has modernized the captive application process and shortened the turnaround time for all requests.

The Connecticut Captive Insurance Association (CCIA) sponsors an annual conference in the state every October with different themes. The 2018 conference, for example, focused on innovation and managing cyber risk through captives.

The conferences not only address specific captive issues but also give attendees the opportunity to meet captive regulators as well as other members of the captive insurance company community.

More information about CCIA conferences is available.

Aside from hosting conferences, CCIA was founded in 2011 to, among other things, keep members up to date on captive issues; promote the interests of the captive insurance industry in Connecticut; establish policy positions on major issues that affect the captive insurance industry, as well as CCIA members; and advocate the interests of the captive industry before federal, state, and local government bodies.

Captive Domicile Statistics

Total Captive Count* Connecticut
Year Captives
2023 53
2022 45
2021 35
2020 22
2019 16
*All counts exclude cell captives.
Captives' Gross Written Premiums Connecticut
Year Premium Volume
2023 $801.1 million
2022 $768.1 million
2021 $700.7 million
2020 $590.0 million
2019 $1.9 billion