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Legislation requested by FM, Amica to help RI insurers grow
STATE HOUSE – Legislation sponsored by Sen. Andrew R. Dimitri and Rep. Alex F. Finkelman has been signed into law, lifting a restriction on the investments of insurance corporations to enable them to grow in Rhode Island.
The bill (2025-S 1047, 2025-H 6315) eliminates a law that limits insurance companies headquartered in Rhode Island from investing any more than 10 percent of their assets in “Schedule BA” investments – generally nontraditional long-term investments other than stocks and bonds, such as hedge funds, private equity and fixed-income securities.
The change was requested by the leaders of Johnston-headquartered FM, and is also supported by Lincoln-based Amica Mutual.
The legislation, which took effect immediately, is meant to level the playing field for insurers in Rhode Island. Neighboring Massachusetts and Connecticut do not have such limits.
“Rhode Island is very fortunate to be home to industry-leading insurers who are among our state’s biggest employers and greatest contributors to our economy. This bill lifts a needless restraint so they have the freedom to innovate and grow, and so they can continue to flourish right here in Rhode Island,” said Representative Finkelman (D-Dist. 74, Jamestown, Middletown).
Said Senator Dimitri (D-Dist. 25, Johnston), whose district includes FM’s Johnston campus, “FM has been a good neighbor and a great employer in Rhode Island for nearly two centuries. They and the insurance industry as a whole, continue to evolve and innovate, and this investment limit doesn’t serve us as well as it did when it was put in place 40 years ago. We now have many other layers of regulatory protection that safeguard insurers’ investments. Eliminating this investment cap is a way to help our insurers compete in the global market, and ensure Rhode Island is a great place for these successful corporations to make their home.”
For more information, contact:
Meredyth R. Whitty, Publicist
State House Room 20
Providence, RI 02903
(401) 222-1923
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