HARTFORD — State Sen. Joseph Crisco, Jr. (D-17) welcomed news of Thompson Reuters’ move to Connecticut.
According to the Associated Press, Thompson Reuters has moved its corporate captive insurance operations from Delaware to Connecticut.
Captive insurance is an emerging strategy for financial risk management in business, in which companies, groups of companies, or associations form subsidiaries specifically designed to protect and insure the assets of the parent company, group, or association, according to a release issued by Crisco’s office.
Last year and earlier this year Crisco, Senate chair of the legislature’s Insurance and Real Estate Committee, included specialized, detailed incentives into state law to attract these businesses to Connecticut, the release stated.
“As more and more businesses find it less cost effective to secure and finance traditional insurance coverage these captive insurance arrangements are growing in popularity, and I was determined to help Connecticut be more receptive to this emerging industry in terms of its regulatory climate,” Crisco said in the release. “In this instance, it seems Thompson Reuters was favorably impressed with both Connecticut’s insurance-savvy workforce and with its state-level financial incentives for this sector.”
Crisco’s incentives are meant to help Connecticut maintain its reputation as the insurance capital of the world, the release stated. Several firms with a global presence, like The Hartford, Aetna, Cigna, and Travelers, maintain their international headquarters in the state. Thompson Reuters’ captive insurance company will operate from Stamford.
“The more we can streamline our state regulations specific to these reinsurance strategies the more likely we are to attract new business and capital to our state from this growing sector, and this news confirms the wisdom of this strategy,” Crisco said in the release. “Connecticut now has its own Captive Insurance Association to complement the newly created division within the state Insurance Department — one will work collaboratively to promote and expand the presence of captive insurance providers and the other will administer the tax credits and other incentives.”