Louisiana has enacted reforms to its captive insurance regime under the Creating Holistic Options in Coverage for Enterprise and Self-Insurance (CHOICES) Law, formally known as Act 313. The legislation was signed into law in June 2025 and took immediate effect, with the aim of positioning the state as a competitive domicile for captive insurance companies. Act 313 introduces a tiered licensing system designed to accommodate a wide range of entities, from emerging businesses to large multinational firms. The law reduces minimum capital requirements for captives, including a cut from US$500,000 to US$250,000 for pure captives, and from US$1 million to US$500,000 for association captives. It also establishes a tiered premium tax structure, with a minimum annual tax of US$7,500 and a cap of US$200,000, in an effort to reduce barriers to entry and encourage broader participation. The updated statute provides greater regulatory flexibility, including options for dormancy status, simplified redomestication, and expanded lines of coverage such as excess workers’ compensation. The Louisiana insurance commissioner now holds broader discretionary powers to approve capital thresholds, reinsurance arrangements, and investment strategies on a case-by-case basis. The law also enhances governance requirements, introducing mandatory meetings — either annual or quarterly — depending on the type of captive. Industry commentators have described the reform as a bold move to stimulate economic development and provide local businesses with more self-insurance options.
