Regulation and Oversight

Bruce Molnar agreed to pay Internal Revenue Service (IRS) penalties for promoting a captive insurance program in place from 2005 to 2012. The program was the subject of the Syzygy Tax Court decision, which found it did not qualify as insurance for tax purposes. The case reflects broader regulatory scrutiny of captive structures. Read More

Arkansas has approved the formation of a state-owned captive insurance company to insure public schools, higher education institutions, and state agencies. Backed by $136 million in funding, the program centralizes risk and engages the reinsurance market directly to manage rising premiums and improve long-term property insurance stability. Read More

A recent Appleby insight outlines a new Bermuda Monetary Authority (BMA) policy allowing captive insurers to use recognized stablecoins for key functions. Limited purpose insurers may now hold stablecoins for premiums, claims, and capital—up to 25 percent of their base—subject to BMA approval, without requiring a digital asset license. Read More

Connecticut's HB 6433 expands captive insurance flexibility by permitting conversions into protected cells, enabling transfers between sponsored captives, and authorizing the Insurance Commissioner to address insolvent cells separately. Read More

The National Association of Insurance Commissioners (NAIC) opposes a proposed 10-year federal moratorium on artificial intelligence (AI) regulation in insurance, warning it would hinder state oversight and disrupt current regulatory authority. The organization urges the Senate to remove the provision, citing concerns over consumer protection, federal preemption, and the need for continued supervision of emerging insurance technologies. Read More