Alabama DOI Extends Moratorium on New Captives, Risk Retention Groups

September 5, 2025

Alabama’s insurance commissioner has extended a moratorium on new captive insurance companies and risk retention groups until at least next summer.

The bulletin, posted this week, follows the commissioner’s announcement in March that the Department of Insurance would not accept or process new registration applications for at least six months. That temporary order will now last a little longer.

“This bulletin is notice that, after consideration in light of internal matters, the moratorium will last until June 30, 2026,” the notice reads. “Interested captive insurance companies, risk retention groups or captive managers action on behalf of captive insurance companies or risk retention groups are requested not to submit application packages or fee payments…during the moratorium period.”

The department has offered little explanation for the pause. “We want to ensure we have the appropriate regulatory infrastructure in place to accommodate this growth responsibly,” a spokesperson said in March.

The March bulletin caught some in the industry by surprise. A number of other states’ insurance regulators, including those in Tennessee and North Carolina, have emphasized their captive-friendliness and the number of captives that have set up shop there.

Topics Alabama

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