New York media and data provider Thomson Reuters is relocating the legal base of operations for its captive insurance unit to Connecticut from Delaware, authorities say.
Gov. Dannel P. Malloy announced Thursday that Thomson Reuters Risk Management Inc. (TRRMI) will serve as the state's first captive insurance company, taking advantage of key changes in Malloy's sweeping jobs reform law of 2011.
That jobs bill expanded the state's 2008 captive insurance law to spell out the types of insurance captives that can operate in the state and established a special regulatory unit at the Insurance Department to focus on them.
A captive insurance company is wholly owned and controlled by a private or nonprofit sponsor, and operates to insure the sponsor's own risks.
By self-insuring, sponsors have greater control over their costs and can tailor their insurance needs to specific risks.
TRRMI insures Thomson Reuters' workers' compensation, general liability, auto liability, property, terrorism, errors and omission and personal accident/travel risks in the U.S.
The relocation of TRRMI's domicile to Connecticut doesn't mean Thomson Reuters will be moving more offices or jobs to the state, but it will likely lead to more business for Connecticut companies that serve the industry, authorities say.
In Connecticut, Thomson Reuters has operations in East Haven and Stamford.
Marsh Captive Solutions, for example, which has an office in Norwalk, is Thomson Reuters' captive manager and advised the firm on its relocation.
It could also create more premium tax revenue for the state, officials said.
The Connecticut Insurance Department issued TRRMI a license Wednesday.