Connecticut Adds to Captive Count with 13 New Formations in 2021

Connecticut licensed 13 new captive insurance companies in 2021, significantly raising the state's number of captives to 35, up from 22 in 2020 and 16 in 2019.

"This was another exceptional year for Connecticut-domiciled captives as businesses leveraged them to strengthen their insurance coverage, fill gaps, and reduce risk," Connecticut Insurance Commissioner Andrew N. Mais said in a statement.

The new licenses approved by the state were for both new captives and the redomestication of captive insurance companies from other domiciles.

Connecticut regulators noted that the newly licensed captives primarily are covering risks for which coverages are not available in the traditional market or that are too expensive.

And Connecticut captive formations are expected to continue to grow. "Captive insurers are growing in popularity. They allow businesses of all disciplines to control costs while better protecting their assets and reinvesting those savings back into their business operations," Fenhua Liu, assistant deputy commissioner, Connecticut Captive Insurance Division, said in a statement.

A significant percentage of Connecticut captives—currently one-third—are sponsored by Fortune 500 companies.