Georgia Governor Brian Kemp signed a new law that expands how captive insurance companies can operate.
House Bill 348, introduced in March, removes earlier limits on the types of insurance lines captives can write.
Now, they may offer any insurance or reinsurance line approved by the insurance commissioner.
The law also broadens who qualifies as a sponsor. It now includes those who help form a limited purpose subsidiary or raise equity for one.
Another change removes the rule that these subsidiaries could only reinsure the risks of their organizing domestic reinsurers.
The definition of a controlled unaffiliated business was also updated. It now includes businesses that have reinsurance or risk-sharing deals with a parent company.
The new definition also covers both direct and indirect investors in pure captives.
Georgia joins other states taking steps to update captive insurance laws. Arizona recently lowered capital requirements for protected cell captives and created standards for dormant captives. South Carolina removed capital requirements for sponsored captives.
The Georgia Captive Insurance Council said the new law will help make the state more competitive and attractive for captives.
This is the first legislation supporting Georgia’s captive insurers and risk retention groups since 2019.
GCIC Chairman Travis Bowden said the law supports the state’s goal to attract new industries and grow its economy.
Bowden, who previously oversaw captive insurers at the Georgia Department of Insurance, added that removing these restrictions helps Georgia compete as a captive insurance hub.
