Michael Maglaras & Company Assists 1,000th Family in Crumbling Foundation Crisis

Michael Maglaras, principal of Michael Maglaras & Company, announced that the Connecticut Foundation Solutions Indemnity Company (CFSIC) has reached a significant milestone, assisting 1,000 families impacted by the crumbling foundations crisis in Connecticut. CFSIC, a Connecticut-domiciled captive insurer, was formed to address the widespread property insurance issues caused by pyrrhotite-infected foundations. 

Connecticut State Senator Saud Anwar, deputy president pro tempore, praised the accomplishment, stating, "What an achievement! I've had the privilege of seeing firsthand how a captive insurance company can be used to benefit the people." He added, "Mike and his team have done outstanding work, and my constituents are very grateful for their success." 

Steve Werbner, CFSIC's board chair and president, remarked, "Today, the Board of Directors of CFSIC and I are celebrating an important milestone. It's always important to remember that this is not a number. This is 1,000 families who have faced the crumbling foundations crisis with bravery and perseverance. CFSIC has been there to help them." 

To date, Mr. Maglaras has secured over $200 million in capital funding from the State of Connecticut.  "We have been contacted by a number of state governments as well as internationally to determine if the CFSIC captive model can be utilized in other ways, such as dealing with the significant challenges of the worldwide climate crisis and the issue of global warming," Mr. Maglaras said. 

The commercial insurance market, with few exceptions, has not provided assistance to homeowners with pyrrhotite-infected foundations. Mr. Maglaras pointed out, "Whenever the commercial insurance market cannot or will not respond, the history of captives demonstrates that they are nimble and creative vehicles to address risk assumption and risk transfer challenges." 

Mr. Maglaras has requested an additional $160 million in funding from the state to continue addressing the crisis. "With this additional capital, we will put this crisis behind us, and a new chapter in the way captive insurance companies can deal with a property insurance crisis will be written," he said. 

For more information, visit www.michaelmaglaras.com or www.crumblingfoundations.org.