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House approves measure letting state form captive insurer to manage disaster risk
Summary
House Bill 50 allows the state risk manager to create a captive insurance company and gives direction to the state treasurer on investing the funds, pitched as a response to rising deductibles and limited reinsurance markets after a year of natural disasters; passed 73–0.
House Bill 50, presented by Representative Dunnegan, passed the Utah House on Monday. The sponsor described recent natural disasters (wind, fire, earthquakes) that have placed pressure on the state's property and casualty insurance, driving deductible inquiries from $1 million toward $5–10 million and constricting reinsurance market access.
HB50 would authorize the state risk manager to establish a captive insurance company to manage state asset exposure and to provide direction to the state treasurer on investing captive funds. The sponsor said a captive structure could expand access to reinsurance markets that are otherwise limited when the state must buy coverage through brokers.
There was no floor discussion; summation was waived and the House passed HB50 73–0. The bill will be transmitted to the Senate for further consideration.
