Alabama Department of Insurance

What Alabama Department of Insurance does

The Alabama Department of Insurance (ALDOI) is a state government regulatory agency headquartered in Montgomery, Alabama, founded in 1897 to regulate the insurance industry and protect consumers within the state. The agency operates under the authority of the State of Alabama and is led by Commissioner Mark Fowler, appointed by Governor Kay Ivey in January 2023. ALDOI serves Alabama residents, insurance producers and agents, insurance companies, and pharmacy benefit managers through licensing, market conduct oversight, rate regulation, complaint resolution, and enforcement of state fire safety standards. Its funding derives from state appropriations and fees collected from regulated entities; it does not operate a commercial revenue model.

ALDOI's primary products include the Strengthen Alabama Homes program — a $10,000 grant initiative housed in the Office of Risk and Resilience that has retrofitted 8,660 homes to the IBHS FORTIFIED Roof standard — and the recently established PBM Compliance Division, which licenses and oversees pharmacy benefit managers under the Community Pharmacy Relief Act (SB252, 2025). The agency also operates the State Fire Marshal's Office, a Fraud Bureau with multiple special agents and investigators, and self-service online portals for consumers (complaint filing, policy search), producers (licensing, CE tracking), companies (rate filings, market share data), and surplus line brokers. The agency's signature data asset is a peer-reviewed Hurricane Sally performance study conducted with the University of Alabama's Center for Risk and Insurance Research, analyzing 86 carriers, 40,000+ policies, and 7,417 FORTIFIED homes, which empirically demonstrated 55-76% reductions in claim frequency.

ALDOI does not generate commercial revenue and is not investable in the traditional PE/VC sense; however, its regulatory architecture, particularly the FORTIFIED program model combining grants, premium discounts, tax credits, and policy endorsements, has been positioned as a national model. The agency participates in the National Association of Insurance Commissioners (NAIC) and the International Association of Insurance Supervisors (IAIS), and co-chairs the Alabama Resilience Council alongside the Alabama Emergency Management Agency, integrating insurance regulation with broader disaster resilience policy in the state.

Name

Alabama Department of Insurance

Legal name

Alabama Department of Insurance

Website

https://aldoi.gov

Company type

Private

Founded year

1897

Operating status

Operating

Headcount range

101–250 employees

Short description

The Alabama Department of Insurance is a state regulatory agency founded in 1897 that oversees insurance market conduct, producer and company licensing, PBM compliance, fire safety, and the Strengthen Alabama Homes FORTIFIED retrofit grant program, serving Alabama consumers, agents, insurers, and pharmacy benefit managers.

Ownership category

akta.pro rank

Product category

Insurance Regulation

NAICS

Agencies, Brokerages, and Other Insurance Related Activities (5242), Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds (524292), Direct Property and Casualty Insurance Carriers (524126)

SIC

Insurance Agents, Brokers & Service (6411), Accident & Health Insurance (6321), Hospital & Medical Service Plans (6324)

akta.pro primary industry

Claims Processing, Adjudication & Payment Integrity (HLAEAKAC)

akta.pro secondary industry

Insurance Literacy (Health, Auto, Home, Life) (EDAAAJAF)

Keywords

• Insurance regulation
• Consumer protection
• Insurance licensing
• Market conduct oversight
• Risk and resilience

Headquarters

HQ city

Montgomery

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Others, Technology or R&D

Distribution channels2 records

Marketing channels4 records

Core offering

The Alabama Department of Insurance is a state government regulatory agency that oversees the insurance industry in Alabama by licensing insurers, producers, and pharmacy benefit managers (PBMs), reviewing rates and forms, enforcing market conduct, investigating insurance fraud, and providing consumer complaint resolution. It also administers the Strengthen Alabama Homes grant program (providing $10,000 grants for IBHS FORTIFIED Roof wind retrofits) and operates the Office of Risk and Resilience to promote insurance market stability and disaster preparedness.

Product overview

The Alabama Department of Insurance (ALDOI) is a state government agency that functions as a regulatory body overseeing the insurance industry in Alabama, rather than a commercial product company. Its primary mission is to serve the people of Alabama by regulating the insurance industry, providing consumer protection, promoting market stability, and enforcing fire safety standards and laws. ALDOI operates several notable programs and divisions: the Office of Risk and Resilience (ORR) houses the Strengthen Alabama Homes program — a grant initiative that awards $10,000 to homeowners for wind retrofitting to the IBHS FORTIFIED Roof standard, designed to strengthen homes against hurricanes and reduce insurance losses. The PBM Compliance Division administers and enforces Alabama's Pharmacy Benefit Manager laws, including licensing PBMs, overseeing compliance, and investigating violations. The department also releases research publications such as the peer-reviewed Hurricane Sally FORTIFIED Study commissioned from the University of Alabama, which provides empirical data on the effectiveness of FORTIFIED construction standards. Additionally, ALDOI provides several self-service online portals serving different constituencies: a Consumer Services Portal for filing complaints and searching insurance policies; a Producer/Agent Licensing Portal for license applications, renewals, and continuing education; a Company Resources Portal for insurers' filing, rate, and market data; and a Surplus Line Broker Portal for policy submissions. The department is led by Commissioner Mark Fowler, appointed by Governor Kay Ivey in January 2023.

Differentiator

Problem solved

Functional benefit

Products and services

• Strengthen Alabama Homes Grant Program An innovative grant program that helps homeowners upgrade their homes to the IBHS FORTIFIED Roof standard to protect against hurricanes and windstorms, awarding $10,000 grants to qualifying Alabama homeowners for wind retrofitting. Administered by the Office of Risk and Resilience, it is a risk control measure designed to make Alabama's housing stock more resilient against catastrophic storms.
• PBM Compliance Division A division within ALDOI responsible for administering and enforcing Alabama's Pharmacy Benefit Manager (PBM) laws, including licensing PBMs operating in Alabama, overseeing compliance with statutory reimbursement standards, audit practices, and reporting obligations, and investigating complaints and alleged violations of Alabama's PBM laws. Enforces the Community Pharmacy Relief Act (SB252, 2025), the Alabama Pharmacy Benefits Manager Licensure and Regulation Act (Act No. 2019-457), and the Pharmacy Audit Integrity Act (Act No. 2012-306).
• Office of Risk and Resilience (ORR) A forward-thinking office within ALDOI established on October 1, 2023, tasked with promoting a healthy and sustainable insurance market by working to solve issues of risk and resilience. The ORR assesses insurance market vulnerabilities, develops risk controls, and provides resources to the insurance industry and consumers. It houses the Strengthen Alabama Homes program and contributes to the Alabama Resilience Council.
• Surplus Line Broker Portal (SLIP+ for States) An online portal enabling licensed Surplus Line Brokers in Alabama to submit ID-12 information online and to view or edit a list of ID-12s already submitted. Beginning January 1, 2026, all policies and endorsements effective on or after that date are required to be reported via the SLIP+ for States platform.
• Consumer Services Portal Online resources for Alabama insurance consumers to file complaints (including consumer complaints, prescription drug complaints, and PBM complaints), search for existing life insurance policies, view long-term care information, access flood insurance resources, learn about Fortified construction standards, view rate comparisons, and utilize premium comparison tools.
• Producer/Agent Licensing Portal Online portal for Alabama insurance producers and agents to apply for, renew, or print licenses, view continuing education transcripts, check application status, locate examination sites, submit proof of citizenship, access fingerprinting information, and manage emergency adjuster licensing.
• Company Resources Portal Online resources for insurance companies operating in Alabama, including company search, filing requirements, rate bulletins, forms, captives information, taxes and fees, admission requirements, coastal credit applications, market share reports, and examination reports.
• Hurricane Sally FORTIFIED Study A peer-reviewed study by the University of Alabama's Center for Risk and Insurance Research, commissioned by ALDOI, analyzing the real-life effectiveness of the IBHS FORTIFIED mitigation program during Hurricane Sally. The study analyzed data from 86 carriers covering more than 40,000 single-family policies and 7,417 FORTIFIED homes in Alabama, finding that FORTIFIED Roof homes experienced a 73% reduction in claim frequency and FORTIFIED Gold homes showed a 76% reduction.

Quantifiable outcome

• Homes built to FORTIFIED standards suffered 55-74% fewer claims and 15-40% decrease in claim severity during Hurricane Sally
• +3 more outcomes

Segments5 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Four partnerships are on record, tiered core.

• University of Alabama Center for Risk and Insurance ResearchcoreStrategic or Co-development Partner · 19 May 2025Collaborative research partnership to study the effectiveness of IBHS FORTIFIED construction standards during Hurricane Sally. The study analyzed data from 86 carriers covering more than 40,000 insured properties and 7,417 FORTIFIED homes in Alabama. This peer-reviewed study provided empirical evidence demonstrating that FORTIFIED homes suffered 55-74% fewer claims.
• Insurance Institute for Business & Home Safety (IBHS)coreStrategic or Co-development PartnerPartnership to implement the FORTIFIED construction standard program in Alabama. IBHS developed the FORTIFIED program which includes FORTIFIED Roof, Silver, and Gold certification levels for homes. Alabama has adopted this standard and created financial incentives including premium discounts and the Strengthen Alabama Homes grant program.
• National Association of Insurance Commissioners (NAIC)coreTechnology or IntegrationThrough NAIC, U.S. insurance regulators establish national standards and best practices, conduct peer reviews, and coordinate regulatory oversight to protect consumers while ensuring a strong, viable insurance marketplace. ALDOI participates in NAIS working groups on pharmacy benefit management.
• Alabama Emergency Management AgencycoreStrategic or Co-development PartnerCo-chaired by Alabama Insurance Commissioner Mark Fowler and Alabama EMA Director Jeff Smitherman, the Alabama Resilience Council was created by Governor Ivey by Executive Order No. 736. The council takes a holistic approach to resilience so that Alabama builds stronger, saves lives, and protects the state's economy.

Scale indicators9 records

Recent moves8 records

Expansion highlights5 records

Direct peers

• Florida Office of Insurance Regulation: Florida's state insurance regulatory agency with comparable hurricane-exposed market, large coastal population, and similar consumer protection and market stability mission. Most directly comparable peer given parallel Gulf Coast/Atlantic hurricane risk and similar FORTIFIED-adjacent resilience challenges.
• Louisiana Department of Insurance: Louisiana's state insurance regulator, facing the same hurricane and windstorm exposure profile as Alabama. Operates parallel functions: insurer licensing, rate review, market conduct oversight, and consumer complaint resolution, with similar coastal market withdrawal concerns driving its policy agenda.
• Mississippi Insurance Department: Mississippi's state insurance regulatory body, another Gulf Coast state with parallel hurricane exposure and post-Katrina market stabilization challenges. Closely comparable in scope, mandate, and the regulatory innovations required to sustain coastal insurance availability.
• Texas Department of Insurance: Texas state insurance regulator operating one of the largest and most complex insurance markets in the U.S., with hurricane and windstorm exposure along the Gulf Coast. Comparable in regulatory breadth across property/casualty, life, and health lines.
• California Department of Insurance: Largest U.S. state insurance regulator by market size, performing parallel functions (licensing, rate approval, consumer protection, market conduct) and addressing catastrophe-driven insurance availability challenges (wildfire parallels Alabama's hurricane concerns).
• Georgia Office of Insurance and Safety Fire Commissioner: Neighboring Southeastern state insurance regulator with a similar combined insurance and fire safety mandate (notably, Georgia uniquely combines both functions). Highly comparable structure and consumer-protection focus for an Alabama peer.
• New York State Department of Financial Services: Major state-level insurance and financial services regulator with broad regulatory authority over insurers and emerging financial products. Comparable in regulatory scope and in addressing complex insurance market stability issues.

Broad incumbents

• National Association of Insurance Commissioners (NAIC): The U.S. national coordinating body for state insurance regulators, of which Alabama DOI is a member. Sets national standards and best practices that Alabama DOI operationalizes locally; relevant peer for understanding the broader regulatory framework within which state departments operate.

Others

• Insurance Institute for Business & Home Safety (IBHS): Research organization that developed the FORTIFIED construction standards adopted by Alabama DOI's Strengthen Alabama Homes program. Not a regulator but a critical ecosystem partner; relevant for understanding the technical standards underlying Alabama's flagship resilience program.
• Alabama Emergency Management Agency: Alabama's state emergency management agency that co-chairs the Alabama Resilience Council with Insurance Commissioner Mark Fowler. Not an insurance peer per se but a directly aligned partner in disaster preparedness and resilience policy that complements ALDOI's regulatory mission.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/AlabamaDOI
• LinkedInlinkedin.com/company/alabama-department-of-insurance
• Instagraminstagram.com/alabamadoi
• Xx.com/AlabamaDOI

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Subsidiaries3 records

Funding overview

Funding rounds

Investors

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M&A

Investments

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Frequently asked questions about Alabama Department of Insurance