Published On: March 11, 2025
Updated On: February 27, 2026
Temporary Moratorium on Captive Insurer Licensing in Alabama | 2025 Bulletin
On March 3, 2025, the Alabama Department of Insurance (ALDOI) issued Bulletin 2025-01, announcing an immediate moratorium on the licensing and registration of new captive insurance companies and risk retention groups in the state. This temporary measure affects entities seeking to enter Alabama’s captive insurance market. Below, we break down what this means for applicants and industry professionals. To view the original Bulletin, click here (https://www.aldoi.gov/pdf/legal/ALDOI%20Bulletin%20No.%202025-01.pdf)
What Bulletin 2025-01 Means for Captive Insurers and Risk Retention Groups
- Effective immediately, ALDOI will not accept or process new applications for captive insurers and risk retention groups.
- This applies to all new applicants, including those working through captive managers, who are advised not to submit application packages or fee payments during the moratorium.
- Applications submitted before March 3, 2025, are not affected and will continue to be processed.
Duration of the Moratorium
- The moratorium is temporary and expected to last approximately six months.
- However, the exact duration may change, and ALDOI will issue a future bulletin with further details.
Next Steps for Affected Entities
- Businesses planning to establish a captive insurer or risk retention group in Alabama should monitor ALDOI announcements for updates. Their webpage can be found here (ALDOI – Legal Bulletins)
- Existing applications will proceed as usual, ensuring continuity for those already in the process.
- Any inquiries about the bulletin can be directed to ALDOI’s Examination Division at ExaminationDivision@insurance.alabama.gov.
Bulletin 2025-01 establishes a temporary pause on new captive insurer and risk retention group applications in Alabama. While the exact duration of the moratorium is unknown, entities should stay informed and prepare for future updates from ALDOI. Those with pending applications can expect continued processing, while prospective applicants must await further guidance.
Johnelee serves as the Senior Marketing Manager at Agenzee, orchestrating strategic growth initiatives and maintaining brand consistency across all marketing touchpoints for Agenzee solutions. Johnelee has created or edited over 100 content pieces on insurance licensing, carrier appointment management, and regulatory compliance. This work helps agencies, carriers, MGAs (Managing General Agents), FMOs (Field Marketing Organizations, TPA (Third Party Administrators), and holding companies navigate the complexities of insurance operations and stay ahead of industry changes.
Johnelee excels at distilling complex insurance processes into accessible content that resonates with insurance professionals. Johnelee collaborates closely with product, sales, customer success, and executive leadership to ensure marketing strategies align with business objectives and customer needs, positioning Agenzee as a trusted partner in modernizing insurance distribution workflows.
Disclaimer: This post is for informational purposes only and does not constitute legal or compliance advice. Agenzee does not warrant the accuracy of and assumes no liability for reliance. Please consult regulators or professional advisors as needed. See our full disclaimer for details.
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