Connecticut Reinsurance

The state of Connecticut operates a non-subsidized reinsurance pool for the small group market (groups of 1 to 50). Any insurer may purchase reinsurance from the pool, with a $5,000 deductible per covered life, for individuals, dependents, or small groups. The choice to reinsure is determined by individual carriers.

The pool is funded by reinsurance premiums paid by carriers that cede risk into the pool, and is augmented with an annual assessment paid by carriers based on their small group market share. The Connecticut reinsurance pool (legislation: Sec. 38a-569) is credited by state officials with keeping the small group market competitive.