Connecticut Working to Attract Captive Insurance Business

Connecticut’s venerable insurance industry is making a pitch for business just as the new federal health insurance marketplace begins to take shape.

Trade group The Connecticut Captive Insurance Association has scheduled a meeting on Wednesday in Stamford. Group President Tom Hodson says it’s intended to raise the profile of Connecticut to bring companies establishing captive insurance divisions.

Captive insurance companies are subsidiaries set up by large companies to insure the company’s risks. Companies can save money that would otherwise go to the bottom line of insurance companies.

The state Insurance Department began working recently to attract companies specializing in captive insurance, a form of self-insurance. The intent was to boost business and create jobs.

Hodson said there’s now “significant interest” among companies to self-insure health care benefits.