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.