Press Release – July 25, 2025

FOR IMMEDIATE RELEASE
July 25, 2025

HARTFORD, CT - Connecticut Insurance Department (CID) Commissioner Andrew N. Mais announced that Governor Ned Lamont has signed into law Public Act No. 25-130, "An Act Concerning Captive Insurance." This legislation strengthens the state's support for businesses that rely on captive insurance to manage their risk and costs.

A captive insurance company is wholly owned and controlled by a one or more businesses to insure the risks of its owners.

"With the signing of Public Act No. 25-130, Connecticut shows its continued commitment to maintaining a business-friendly and competitive environment for captives," said Commissioner Mais. "We understand the evolving risk management needs of businesses, and these updates, combined with the state's expertise and focus on innovation, reinforce Connecticut's position as a leading domicile for captives."

Effective October 1, 2025, the Act introduces several key updates to Connecticut's captive insurance framework:

• Allows different types of captive insurers, including pure captives, sponsored captives, special purpose financial captives, agency captives, industrial insured captives, and association captives, to convert into protected cells with the Insurance Commissioner's approval.
• Permits sponsored captive insurers, with the necessary consent and approval, to sell, transfer, or assign a protected cell and its related assets and obligations to another new or existing sponsored captive.
• Authorizes the Commissioner to separate an insolvent protected cell and convert it into a new protected cell or standalone captive, while keeping its assets, rights, and obligations intact.

"These updates demonstrate our commitment to giving businesses greater flexibility and practical tools to manage risk," said Fenhua Liu, Captive Division Director at the Connecticut Insurance Department. "By listening to industry needs and adapting, we help ensure Connecticut remains a trusted and forward-looking home for captives of all sizes."

Public Act No. 25-130 builds on reforms passed in recent years, including enabling captives to engage in parametric risk transfer contracts, reducing minimum capital requirements based on risk, and allowing protected cells to convert into standalone captives. These updates reflect Connecticut's focus on maintaining an innovative and flexible regulatory approach.

To learn more about captive insurance and whether it may be a fit for your business's risk management strategy, please contact Fenhua Liu or visit the Captive Division page on the CID website.

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Contact:
Mary Quinn
Communications Director
[email protected]
(959) 529-4904