Connecticut is one of the newer captive insurance domiciles in the United States, and the state has established a strong foundation for continued growth. Connecticut licensed its first captive in 2012, and the market has grown steadily since then. The number of licensed captives increased from 16 in 2019 to 63 in 2025, with captive premiums reaching approximately $915 million. When protected cells and other risk-bearing entities are included, the broader captive market has grown to 112 entities. New captives have been established across a broad range of industries, including real estate, healthcare, manufacturing, technology, transportation, finance and insurance, wholesale, trade associations, and industrial gas.
As Connecticut Insurance Commissioner Josh Hershman has stated, "The strength of Connecticut's captive insurance program, the dedication of our team, and the strong partnerships across our captive insurance community continue to drive growth and innovation."
The Connecticut Insurance Department has focused on responsive regulation, clear guidance, transparency, and efficient use of resources. Updated online resources and an eligibility screening tool help prospective captive owners better understand Connecticut's requirements before beginning the licensing process.
Fenhua Liu, assistant deputy commissioner and director of the Captive Insurance Division, emphasizes the department's commitment to supporting the industry's long-term development. She said, "Our team is committed to providing responsive service, thoughtful regulation, and practical guidance that help captives navigate the regulatory process and succeed in Connecticut."
Connecticut's long-standing reputation as an insurance center is another key advantage. The state has a deep concentration of insurers, reinsurers, brokers, actuaries, attorneys, accountants, consultants, and insurance technology companies, providing captive owners with access to the expertise needed to establish and manage sophisticated risk-management programs.
Connecticut has also continued to modernize its captive insurance laws to keep pace with the evolving industry. Legislative changes from 2022 through 2025 increased flexibility in areas including capital and surplus requirements, regulatory examinations, reinsurance, sponsored captives, and protected cells. The reforms also provide greater flexibility to convert, transfer, and restructure protected cells and address insolvent cells. Together, these changes reinforce Connecticut's commitment to maintaining a modern, flexible, and competitive captive insurance environment. The state has also invested in building a stronger captive community. The annual Connecticut Captive Insurance Forum, launched in 2023 by the Connecticut Insurance Department in partnership with the Connecticut Captive Insurance Association and InsurTech Hartford, brings industry leaders and business professionals together to discuss emerging issues such as artificial intelligence, climate risk, parametric insurance, and regulatory developments.
Connecticut's competitive environment—including experienced regulators, competitive fees, tax credits, a strategic Northeastern location, modern laws, and a robust insurance ecosystem—has helped attract sophisticated captive owners and service providers. The state's progress has also received industry recognition, with the Connecticut Insurance Department being named Domicile of the Year in 2022, 2023, and 2025. Looking ahead, Connecticut's goal is not simply to increase the number of captives in the state but to build a sustainable and innovative captive market that helps businesses address insurance availability and affordability challenges, strengthens Connecticut's insurance ecosystem, and reinforces the state's long-standing reputation as the "Insurance Capital of the World."
