Iowa approves bill for life reinsurance captives

Iowa has approved a bill that updates the state's captive insurance law and would create a framework for life captive reinsurance companies for the first time.

The bill also revises the state’s existing captive insurance statute in other ways. These include definitions, licensing requirements, regulatory oversight, and how captive insurers apply for a certificate of authority.  

The measure has passed both chambers. The governor is now required to action it.

The measure also addresses permitted lines of coverage as well as how a captive may leverage other risk transfer arrangements such as parametric contracts.  

The bill creates a regulatory structure for life captive reinsurance companies for the first time. These will be required to maintain a minimum of $5 million in capital and surplus, operate from Iowa, and obtain a certificate of authority based on submitted and agreed plans.

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