Connecticut Governor Dannel P. Malloy has recently put forth proposals in an effort to make Connecticut an enticing domicile for captive insurance companies. According to media reports, Governor Malloy has asked the legislature to approve a $7,500 first-year tax credit for new captive insurers. In addition, his proposed 2012 budget would provide increased funding to the Connecticut Insurance Department (the “Department”) and allow it to hire staff dedicated to regulating captive insurance. While Connecticut law has permitted the formation of captive insurance companies since 2008, none have yet been formed. It is anticipated that the amounts in the proposed 2012 budget would allow the Department to add 18 full-time positions to regulate captive insurers. Governor Malloy believes that building up Connecticut’s captive insurance market will lead to more jobs for Connecticut insurance professionals.