HARTFORD, Conn. (AP)—Connecticut has scored its first win in a campaign to bring new insurance business to the state.
Gov. Dannel P. Malloy announced on Thursday that media and information company Thomson Reuters has relocated its company dedicated to captive insurance, which is a specialized form of self-insurance. It is moving from Delaware to Stamford.
Captive insurance companies are subsidiaries set up by large companies to insure their own risks and save money that would otherwise be paid to insurance companies.
To bring more of the business to Connecticut, the legislature developed a division in the Insurance Department establishing rules for companies specializing in captive insurance. Legislation also provides a $7,500 credit against the first year of premium taxes, said Tom Hodson, president of the Connecticut Captive Insurance Association.
Michael Warren, head of Thomson Reuters’ risk management business, said moving to Stamford is logical because the Delaware site closed last year and the company has a large presence in Stamford.
Hartford, which is home to Aetna Inc., Cigna Corp., The Hartford, Travelers Cos. and others, has been synonymous with insurance since the 18th century. But the industry has fragmented, with companies merging and selling units and shifting headquarters to other states.
As a result, Connecticut's reputation as an insurance leader has diminished.
However, Hodson said the state is still known as the insurance capital of the United States. The state has a large workforce familiar with the insurance industry and can quickly staff captive insurance companies setting up shop in Connecticut, he said.