Connecticut Crumbling Foundations Captive Reaches Major Milestone
March 04, 2022
The captive insurance company formed to respond to the crumbling foundations property insurance crisis in Connecticut has successfully placed more than 500 families back into homes with safe and secure foundations in less than 36 months, according to Michael Maglaras, principal of Michael Maglaras & Company.
"With more than 500 families now back in their homes in less than three years, we've reached an important milestone," Mr. Maglaras said in a statement. "My staff informed me last Friday that, with a foundation replacement in Vernon, Connecticut, we had achieved the number of 503 families assisted."
Connecticut Foundation Solutions Indemnity Company, Inc. (CFSIC), a Connecticut-domiciled captive insurance company formed by Michael Maglaras & Company in 2018, was created to respond to the crumbling foundations property insurance crisis in Connecticut.
Steve Werbner, board chairman of CFSIC, added in the statement, "I'm delighted with this progress. We did not expect to reach the milestone number of 500 until the end of April of 2022, at the earliest. I and the entire board congratulate Mike and his great team on this major achievement."
Mr. Maglaras also reported that, so far, CFSIC has raised another $188 million in capital to continue its underwriting platform.
"With another $188 million in capital raised from state government, this innovative captive solution to a commercial market crisis is the most important model of its kind in the world," Mr. Maglaras said. "Of all the captives we consult with, this is the one that is actually making a direct difference in people's lives, and for me and my team it's a very gratifying initiative."
The state of Massachusetts has a similar crisis involving at least 1,000 homes. A similar crisis also exists in Northern Ireland and Canada, as well.
"Captives have always been an innovative and responsive solution when the commercial market cannot or will not respond," Mr. Maglaras said. "Around the world, as we now must respond to a global cyber insurance market crisis, CFSIC is recognized as a model of government collaboration with a private captive enterprise for the direct benefit of citizens."
March 04, 2022