Connecticut is looking to re-establish itself as the insurance capital of the nation. Legislators are currently working on a plan to encouraging more companies that specialize in captive insurance to come to the state. Captive insurance is a form of self-insurance used often in the insurance industry. Captives are typically spin-off insurance groups that provide coverage for their parent company. This allows large insurers to take more risks and explore new investment ventures. They would also bring more jobs to the state and could help bolster the economy.
According to state officials, insurance jobs in Connecticut have fallen by 30% since 1990. The state is still among the top in the country in terms of insurance premiums and underwriting, but it has fallen considerably in the previous decade. Legislators want to see the state returned to its previous glory, in terms of insurance, and are now reaching out to insurance companies for help on drafting a plan. Governor Dannel Malloy also wants to hire more staff for the state’s Department of Insurance in an effort to keep up with the expected rise in workload brought on by additional captives.
According to the Department of Insurance, Connecticut has more than 200 years of experience with the insurance industry, which may give it an edge in winning favor with insurers that have moved to neighboring Vermont.
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