Posted on 06 Apr 2009
Leading insurance broker and risk advisor, Marsh, announced its captive management practice has been recognized by the State of Connecticut Insurance Department to provide captive management services for captive insurance companies to be domiciled in the state in accordance with its recently enacted captive legislation. A global leader in captive management services, Marsh is the first firm to receive recognition from the Connecticut Insurance Department, which enacted captive legislation effective on January 1 of this year, to provide captive management services in the state.
Under the state's new law, public and private businesses of all sizes will be permitted to own and operate a captive insurance company in Connecticut, which would give them an opportunity to realize certain potential economic, risk management and business benefits associated with forming a captive. According to Marsh, in the current economic environment, companies can increase their retentions and finance their retained risk through the use of a captive.
"We are pleased to add Connecticut to the growing list of captive domiciles in which Marsh has invested in a local presence," said Julie Boucher, a managing director of Marsh's U.S. Captive Solutions Practice. "Connecticut's excellent reputation as an insurance center and its outstanding knowledge base in accounting, law, and technology already is drawing clients’ interest in Connecticut as a location for their new and existing captive insurance companies."
Firms based in Connecticut that choose to locate their captives there also may benefit from ease of travel for board meetings, proximity to the state’s Insurance Department, mitigation of state self-procurement taxes, and simplified merger laws that may help to facilitate change of domicile from anywhere in the world to Connecticut. In addition, the state’s new captive regulations offer a number of incentives for businesses that locate their captive insurance companies in Connecticut, including low premium taxes and no premium tax on reinsured business.
In addition to its captive management operations, Marsh provides insurance brokerage and risk management consulting services through offices in Hartford and Norwalk. Across all of its operations, Marsh has more than 200 employees in Connecticut.