Last month, Gov.
"Restructuring and lowering the premium tax will substantially improve market conditions for
Malloy also stressed that the lower premium should be seen as evidence that his administration was attempting to strengthen
"There are simple and relatively inexpensive ways we can improve the business climate by making state government more predictable and sustainable," he said, adding that the state needed to respond to insurance companies "so that they continue to thrive and grow in our state."
On the whole, business and insurance industry leaders were supportive of the proposal.
"Most insurance companies sell outside of the state, so this makes our companies more competitive around the country," Brennan said. "This is a step in making an environment here that is more favorable for in state insurers."
Ruppar also pointed out that this was not a new idea. "It has been proposed in the past, but people didn't feel it was necessary," he said. "Maybe the timing is right this year."
One development that might have influenced the timing of the proposal was Aetna's none-too-subtle hints that it could leave its
Herbert warned that while Aetna and Cigna continue to play dominant roles in the local economy, their presence cannot be taken for granted. "We can ill afford to lose either of these corporate titans, and we need a signal from the governor that he wants
The Malloy proposal could possibly encourage other states to follow suit. "Your neighboring state,
"I wouldn't be surprised if they moved," Romano said about the Aetna exodus rumors. "