Connecticut Insurance Commissioner Katharine L. Wade announced that a corporation specializing in consultation and financial management for reinsurance companies is expanding its footprint in Connecticut.
The Connecticut Insurance Department said New Jersey-based SOBC Corporation is establishing a sponsored captive insurance subsidiary in Connecticut that will specialize in helping reinsurers that are exiting the market pay off their claims.
The subsidiary, SOBC Insurance Company Ltd., becomes Connecticut’s eighth captive insurer and first so-called “sponsored captive” company since Connecticut’s 2011 legislation cleared the way for the state to begin licensing these specialty insurers.
The Department said it recently licensed the Hartford, Connecticut-based SOBC Insurance Company after an extensive application process. SOBC Insurance Company will provide risk financing, management and claims services for portfolio transfers of small books of business currently exiting the market.
A captive insurance company is wholly owned by a parent company and operates to insure the parent’s risk and control costs. A sponsored captive’s client is not the parent company but rather can be one or more entities that use segregated accounts or “cells” set up by the sponsor to finance each client’s risk.
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