Conn. Seeks to Recapture Role as Insurance Capital

The city of Hartford, Conn., is trying to recapture its status as the nation’s insurance capital by drawing in a specialized insurance business that is finding a home elsewhere.

Since the 18th century, Hartford — home to Aetna Inc., Cigna, The Hartford, Travelers Cos. and others — has been synonymous with insurance. Even Hartford’s skyline is dominated by the 34-story granite Travelers tower built in 1919.

But as the industry fragmented and companies merged and sold units and shifted headquarters to other states, Connecticut’s luster as the insurance leader dimmed.

Now Gov. Dannel P. Malloy is looking for something new in one of the state’s oldest industries. His latest budget proposes to establish a division in the Insurance Department to regulate companies that specialize in captive insurance, a form of self-insurance.

The legislature established the division in the Insurance Department and Malloy now wants it staffed. He and lawmakers also hope that developing a captive insurance industry — following the lead of many other states — will establish much-needed jobs. Connecticut already is home to thousands of insurance workers who can quickly fill new industry jobs, say state officials and industry representatives.

To help lure new companies, Malloy wants the legislature to establish a $7,500 tax credit for a captive insurer’s first year in business and modify certain requirements.

Topics Connecticut