Connecticut Gov. Dannel P. Malloy announced last week that Hartford, Connecticut-based health insurer Aetna is establishing its captive insurance company in its home state, becoming the state’s fifth licensed and largest captive insurer to date.
Aetna’s captive, the Aetna Risk Insurance Company, will provide liability coverage for Aetna, including errors and omissions, employment practices liability, and other related coverages. Aetna previously had captive insurance operations in Bermuda.
“This homecoming is great news,” Malloy said on Nov. 6. “Aetna’s commitment in establishing this important subsidiary in its home state speaks to the confidence that business and industry has in Connecticut to grow their operations. We have the skilled workforce to meet the needs of this emerging industry and the regulatory climate to properly oversee them.”
Connecticut Insurance Commissioner Thomas B. Leonardi noted there are nearly 40 states that regulate captive insurers. But, he added, “Connecticut is carving out a creative and attractive niche in this emerging industry by helping companies form sustainable captive operations that will be in it for the long run.”
“The department appreciates the vision and staunch support from Governor Malloy and the legislature for helping grow this segment of the industry,” said Leonardi.
Captives in Connecticut are managed by specialty firms that employ a range of financial, actuarial and legal professionals who are part of Connecticut’s specialized insurance industry workforce. Once an alternative to the commercial insurance market, captives have evolved into strategic financial vehicles used for many different enterprises, such as manufacturing and health care, according to the governor’s announcement.
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