Three bills affecting Louisiana's captive insurance framework have been prefiled for the state's 2026 legislative session, which convened on 9 March, prompting an industry observer to circulate a written assessment of the proposals to contacts within the captive sector. Jennifer Haskell, MBA, CFE, CIE, director of regulatory compliance at Risk Services Companies, and a former insurance regulator, provides the following perspective on the three prefiled bills. House Bill 904 (HB 904), sponsored by Representative Bamburg and supported by the Louisiana Department of Insurance, arises from practical issues identified during the processing of captive risk retention group (RRG) applications in the state. The bill amends Louisiana’s existing captive statute to give the commissioner greater flexibility in applying regulatory judgement, including the authority to waive certain requirements for RRGs where doing so would not violate accreditation standards of the National Association of Insurance Commissioners (NAIC). It also expands permissible forms of capital and surplus, authorises the commissioner to require deposits to address financial solvency concerns, aligns RRG governance and annual reporting with NAIC standards, and converts mandatory rate-filing requirements into discretionary ones. In her written note, Haskell writes: “In fact, it may ultimately represent some of the most favourable language in the country, as it gives the Commissioner significant flexibility to apply regulatory judgment rather than forcing every captive into a rigid, cookie-cutter structure.” House Bill 932 (HB 932), introduced by Representative Edmond Jordan, would create the Louisiana Commercial Trucking Insurance Market Reform Act. It would require any captive insurer covering Louisiana commercial trucking risks to pay an annual contribution of three per cent of retained premium into a newly created Louisiana Commercial Trucking Market Access Fund, regardless of where the captive is domiciled. The bill also establishes minimum reserve and surplus requirements for such captives, mandates coverage disclosure within 30 days of a claim, creates a small carrier group purchasing pool, and permits direct action against captive insurers by judgment creditors. Haskell writes that the proposal has generated significant concern within the industry. In her note, she states: “The legislation fundamentally mischaracterises captive insurance and risk retention groups, which are legitimate, highly regulated risk-management structures used by responsible trucking companies across the country. By imposing a punitive contribution on retained premium and attempting to regulate captives regardless of domicile, the bill effectively creates a targeted tax on alternative risk financing while raising serious federal preemption concerns under the Liability Risk Retention Act.” She adds that the bill also risks undermining broader efforts underway in Louisiana to address the affordability and availability of insurance in the commercial trucking sector. House Bill 936 (HB 936), also sponsored by Jordan, would enact a new Louisiana Captive Insurance Act, establishing a standalone framework covering licensing, capitalisation, governance, protected cell companies, actuarial requirements, premium tax, and a captive insurance advisory committee. Haskell writes that the proposal does not appear to align with the department’s current approach to developing the state’s captive insurance framework: “Given the effort undertaken to modernise the statute and position Louisiana as a viable alternative risk jurisdiction, legislation like this risks reversing that progress.” Haskell notes that both HB 932 and HB 936 are sponsored by Jordan, whose legislative biography identifies him as co-owner of Cypress Insurance Agency. She writes that while the intent may be to address challenges in the trucking insurance market, “the proposals reflect a fundamental misunderstanding of captive insurance and risk retention groups and could have far-reaching consequences for Louisiana’s growing captive sector.” In response to the proposed legislation, the Louisiana Department of Insurance comments: “The Louisiana Department of Insurance is in the process of reviewing all captive-related legislation filed this session. We look forward to engaging with legislators to continue improving Louisiana’s captive insurance market.”
