A new law that streamlines Hawai'i's captive insurance industry may prove to be beneficial for local banks, professionals and consultants.

That's the word from state Insurance Commissioner J.P. Schmidt, who said the new law provides a clear and efficient process for securitization of insurance products. His office said securitization allows certain insurance risks to be packaged with shares being sold as investments.

The new law, Act 190, helps streamline the industry in keeping with cutting-edge business strategies on securitization, Schmidt said in a news release.

Local professionals could benefit from this by lending support to the securitization transactions, he said.

Captive insurance is a form of self-insurance. Hawai'i's laws allow a company to set up here to obtain a special license from the Insurance Commissioner to insure the risks of its owner and affiliates.