Hawaii introduces risk-based supervisory model
Hawaii will update its captive insurance regulatory framework to a new risk-based supervisory model. One implication will be captive insurers (excluding risk retention groups) undergoing an examination within five years of licensure.
The five-year pilot framework is designed to allow Hawaii to evaluate a more flexible, risk-based supervisory model while preserving full regulatory authority. A legislative review prior to 2031 will provide an open opportunity to refine or extend the framework based on real-world outcomes.
The bill was passed with amendments following a House & Senate Conference Committee hearing. The measure now only requires approval and signature by Governor Josh Green to be enacted into law.
“This evolution reflects Hawaii’s long-standing philosophy of pairing regulatory rigour with practical, risk-based oversight,” said Paul Shimomoto, president of the Hawaii Captive Insurance Council, and also a partner at Goodsill Anderson Quinn & Stifel.
“Importantly, it is not a relaxation of standards, but a refinement in how those standards are applied. Captives that demonstrate disciplined governance, strong risk management, and consistent compliance are rewarded with a more efficient supervisory approach—while the insurance commissioner retains full authority to act where risk warrants.”
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