Florida Has Opened its Doors for Captive Insurance

Over the past 90 days, I’ve received several calls from prospects exploring forming a captive insurance company in the state of Florida. They have been encouraged by the Florida House Bill 1101 which became effective on July 1, 2012. Among other things, this bill permits “industrial insured captives”  in the state. Essentially this opens Florida up for competition with established captive domiciles both within the U.S. (Vermont, South Carolina), and abroad (Bermuda, Barbados).


HB1101 provides a detailed definition of the industrial insured captive. Essentially, though, the bill defines industrial insureds as having:


(1)  assets greater than $50 million;

(2)  more than 100 employees;

(3)  annual insurance premiums greater than $200 thousand per line of business.


Industrial insured captives are allowed to insure for their member companies all commercial lines of business except workers’ comp, they must maintain unimpaired paid-in capital of at least $200 thousand and surplus of at least $500 thousand. The bill also permits captive reinsurance companies with much higher capital requirements to reinsure workers’ compensation risk.


Captive insurers of all types will be required to perform an actuarial analysis as part of its initial feasibility study. Then, it also must file annually an actuarial opinion on loss and loss adjustment expense reserves provided by an independent actuary. HB Actuarial Services is licensed to provide this independent actuarial opinion.