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Subcommittee approves update to captive insurance law to allow protected-cell captives
Summary
HB 883 would authorize protected-cell captive insurance companies in Florida and modernize captive statutes. Proponents argued the change will help retain insurance and reinsurance business in-state and support job growth; the committee reported the bill favorably with a committee substitute after limited debate.
Representative Fabricio introduced HB 883 to authorize protected-cell captive insurance companies — a captive structure designed to make captive insurance more accessible to smaller businesses — and to modernize Florida’s captive statutes.
Supporters, including the Florida Risk Institute and the Florida Captive Insurance Association, said Florida’s captive statutes are dated and that adopting modern protected-cell rules will help keep insurance and reinsurance business and related jobs in-state. Ben Stearns of the Florida Captive Insurance Association told the committee that modernizing captive law will send a signal to the industry that Florida is open for captive insurance business.
Members generally praised the measured approach in the bill, noting it is intentionally limited so the market is not opened too widely at once. The committee adopted technical amendments and reported HB 883 favorably with a committee substitute.
Next steps: Bill will move forward with committee substitute; sponsors and proponents said they will continue outreach to industry and state stakeholders.
