Connecticut Captive Sector Experiences 4 Years of Sustained Growth

Connecticut saw a notable 37 percent increase in its captive insurance sector in 2023, according to a statement from the Connecticut Insurance Department (CID). This growth includes the addition of 10 new captive insurers and 13 new cell risk-bearing entities, with a net gain of 78 captive entities.

Representing the fourth consecutive year of sustained growth, Connecticut's 2023 approvals include the establishment of new insurers and the relocation of existing captive insurers to the state.

"With recent pro-captive legislation, increased staffing, internal support, and collaborations across the state, Connecticut continues to attract global captive insurers and service providers, further establishing itself as a premier domicile and solidifying our title as the insurance capital of the world," said CID Commissioner Andrew Mais.

Connecticut-domiciled captives insure risks that include commercial auto liability, general liability, workers' compensation, contractual liability, climate risk, business interruption, mechanical breakdown, employment practices liability, reputation risk, cyber attacks, and other environmental, social, and governance risks.

"Under Commissioner Mais's leadership, we will continue to employ a risk and principles-based approach to provide cost-efficient and flexible regulations, ensuring the long-term success of captive insurers," said Fenhua Liu, assistant deputy commissioner of the CID Captive Insurance Division.