What Alabama’s Extended Captive Insurance Moratorium Means for You

The Alabama Department of Insurance has issued Bulletin 2025-05, extending the moratorium established in Bulletin 2025-01 on the acceptance and processing of new filings for the registration or licensing of captive insurance companies and domestic risk retention groups. The moratorium, which initially began March 3, 2025, will now remain in effect through June 30, 2026.

The original moratorium allowed for a period of up to six months but, following internal review, the Department has determined that additional time is required. During this period:

• No new application packages or fee payments for captive insurance companies or risk retention groups should be submitted.
• The restriction applies to captive managers acting on behalf of these entities.
• Applications submitted before March 1, 2025, and already under review will continue to be processed as practicable.

This measure is considered temporary, and the Department notes that any changes, whether an earlier expiration or an additional extension, will be announced through future bulletins.

Summary

If you’re considering forming a captive insurance company or risk retention group in Alabama, it’s important to adjust your timelines accordingly. For now, June 30, 2026, is the key date, but keep an eye out for further updates from the Alabama DOI.

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