N.J. Holds First Captive Insurance Summit

New Jersey regulators held their first captive insurance summit on Sept. 19 in Somerset, N.J. The event, hosted by the department of banking and insurance, attracted some 80 industry executives.

Regulators took the opportunity to discuss New Jersey’s captive law and regulations, the admissions process and what potential applicants can expect when starting a captive insurer.

The department of banking and insurance stated that since New Jersey Gov. Chris Christie signed the captive law into effect in 2011, the department officials have taken an active approach to fostering growth in the captive insurance marketplace. Since the state’s captive law was signed into law, four captives have been approved by regulators.

Kenneth Kobylowski, acting commissioner of the state department of banking and insurance, said at the event that eight prospective captive insurers are now in the pipeline. “There is no question that this is just the beginning,” he said.

Connecticut Adds Second Captive

Meanwhile, Connecticut Gov. Dannel Malloy announced last month that Stanley Black & Decker is moving its captive insurance subsidiary, SBD Insurance, from Vermont to Connecticut, establishing the state’s second captive insurer. Stanley Black & Decker is a New Britain, Conn.-headquartered manufacturer of tools and home hardware.

The state’s first captive insurer — Thomson Reuters Risk Management — was licensed in July.

Connecticut’s special legislative session in October 2011 produced a major jobs bill that included revisions to the state’s 2008 captive insurance law.

The revisions expanded the types of insurance that captives can transact in the state and established a special regulatory unit at the insurance department to focus on captives.