Tennessee has record year for captive growth; nine entities redomicile there
Tennessee’s total number of risk bearing entities (RBEs) reached 538 in 2016 with 104 new additions, according to the Tennessee Department of Commerce & Insurance (TDCI).
These new arrivals comprise 30 pure captives, five protected cell companies, one association captive, one risk retention group, and 67 new protected cells.
These new formations in 2016 bring the state’s total to 159 captive insurance companies and 379 protected cells formed.
Nine of the newly added captives are redomestications to Tennessee from other domestic and international domiciles.
“We are proud of the progress made last year to expand Tennessee’s captive insurance market,” said TDCI Commissioner Julie Mix McPeak.
“Forming over 100 risk bearing entities in 2016 and over 500 entities in five years is quite a feat. TDCI remains committed to its role of maintaining proper regulation of captive insurance in Tennessee.”
Captive insurance has already brought 82 new full-time white collar jobs to Tennessee and over $430 million in direct and indirect spending and capital investment to the state, according an internal economic development survey conducts in 2016.
Michael Corbett, Director of Captive Insurance at TDCI, added: “Tennessee has clearly established itself as the ‘it’ domicile for captive insurance.
“The redomestication of nine captive insurance companies to our state shows that more and more leaders in this industry are comfortable setting up their captives here. We especially appreciate the efforts of the Tennessee Captive Insurance Association (TCIA) in helping to make this growth happen.”
