MONTGOMERY, AL –Alabama has been recognized as one of the top domiciles in the United States by Captive International, a well-known media outlet in the global captive insurance market.

Alabama currently maintains one of the most attractive environments for captives due to:  

  • Allowing captives to form as any entity allowed under law, including Series LLCs and mutuals
  • A 60-day provisional license option 
  • Cap on premium taxes of $100,000 
  • No premium tax or examination on dormant captives 
  • Premium tax prorated in first year of operation 
  • Premium tax credits for examination fees paid 
  • Innovative segregated cell statutes
  • Utilizing employee health benefits in captive structures, especially in the area of businesses with fewer than 50 health plan participants.

Within the past year, Alabama has experienced success on many fronts as a domicile. The 2020 update to the Alabama Captive Insurers Act,  expected to become law next spring, aims to reduce the burden imposed upon coastal property captives, drastically re-think branch captives by broadening the lines of business allowed and affords for reasonable capitalization requirements and incorporate the “legal there, insure it here” doctrine.

Recently, the Alabama Captive Insurance Association successfully hosted the first in-person event for the captive insurance industry in 2020. This event placed Alabama as a leading domicile for risk management and mitigation in showcasing how to safely return to in-person events in light of the COVID 19 pandemic.

Additionally, the Alabama Captive Insurance Association (ACIA) created a new political action committee (CAP PAC) to assist in promoting a climate conducive to alternative risk and captive space. 

Furthermore, Alabama is now home to a cutting-edge risk management internship program, Risky Business.  Risky Business is a partnership between the ACIA and its association members that strives to expose students to several sectors of the insurance industry through company rotational cycles during their internship term.


The Alabama Captive Insurance Association (ACIA) supports the captive industry in the State of Alabama and provides captive networking and educational opportunities for captive owners, captive insurance professionals and young professionals entering the captive industry while promoting the collective voice of its members with state and federal regulators, legislators, and the National Association of Insurance Commissioners.