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. At the end of 2020, Connecticut had 22 captive insurance companies.

While the number of Connecticut captives—compared to many other domiciles—is small, several of those captives have very well-known parents, including media giant Thomson Reuters, which, in 2012, moved its Delaware-based captive to Connecticut, becoming Connecticut's first captive, and health insurer Aetna Inc., which set up a Connecticut captive insurance company in 2014.

A wide range of experts say—for a variety of reasons, including convenience and costs—that number will be rising.

"There is convenience in having captives in the state in which they are based" for captive parents, says Janet Grace, captive unit program manager with the Connecticut Insurance Department in Hartford. (Ms. Grace subsequently passed away in June 2020. Fenhua Liu now serves in the position.)

At the same time, setting up a captive in the state where the parent is based cuts time and travel expenses, Ms. Grace added.

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, president of the Connecticut Captive Insurance Association and a principal and consulting actuary with Milliman Inc. in Wakefield, Massachusetts.

"There is no other domicile with the combination of traditional talent, captive insurance talent, and an InsurTech innovation center," Mr. DiCenso said.

Yet another strength Connecticut brings as a captive domicile is the quality of regulation, captive experts say.  Ms. Grace, for example, was "one of the best captive regulators in the country," says Pam Ferrandino, vice president—national market engagement with Gallagher Bassett in Essex, Connecticut.

Connecticut legislators also have been highly receptive to considering and making changes to the state's captive statute to keep it up to date.

"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.

Capital and surplus requirements differ by type of captive. For example, the minimum capital and surplus requirements are $250,000 for a single-parent captive, $500,000 for industrial insured captives, and $1 million for risk retention groups.

Company Contacts

Mailing Address:
153 Market St., 6th Fl.
Hartford, CT 06142–0816
(860) 297–3813

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.

Connecticut is home to some of the largest commercial insurers in the United States. Accordingly, the state has an extensive amount of insurance expertise in a number of areas. By increasing funding for captive regulation in the state's budget, the current administration hopes to grow its regulatory and service expertise and to attract more captives choosing to domicile in the northeast.

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
2020 22
2019 16
2018 15
2017 14
2016 14
*Counts for 2016-2017 do not consider inactive captives. Count for 2018 includes inactive captives. All counts exclude cell captives.
Captives' Direct Written Premiums Connecticut
Year Premium Volume
2020 $590.0 million
2019 $1.9 billion
2018 $300.0 million
2017 $363.0 million
2016 $297.1 million