Connecticut Updates Its Captive Insurance Laws

Effective October 1, 2025, Public Act No. 25-130 amends Connecticut’s captive insurance laws. Important amendments under the act include:

1. Establishing Conn. Uncodified H.B. 6433 § 3, which permits any captive insurance company domiciled in Connecticut and organized as an agency captive, association captive, pure captive, or special purpose financial insurance company to convert to a protected cell with the insurance commissioner’s prior written approval.
2. Permitting sponsored captive insurance companies, including a sponsored captive insurance company licensed as a special purpose financial insurance company, to, with the insurance commissioner’s prior written approval, “sell, transfer, assign or otherwise convey a protected cell, together with all of such protected cell’s assets, rights, benefits, obligations and liabilities, to a new or existing sponsored captive insurance company or sponsored captive insurance company licensed as a special purpose financial insurance company….” Conn. Uncodified H.B. 6433 § 3(e).
3. Amending Conn. Gen. Stat. § 38a-91rr by permitting the insurance commissioner, in the event of an insolvency of any protected cell of a sponsored captive insurance company, to separate a protected cell from the sponsored captive insurance company and allow for the conversion of such protected cell into a new protected cell of another sponsored captive insurance company or into a captive insurance company. Such conversion retains the protected cell’s assets, rights, benefits, obligations, and liabilities.

Connecticut Insurance Commissioner Andrew Mais stated that the enactment of the act “shows [Connecticut’s] continued commitment to maintaining a business-friendly and competitive environment for captives.” The act builds upon prior reforms Connecticut has enacted in the captive space in recent years.