9 May 2023Analysis

Tennessee hits 1,000 captive milestone

The Tennessee Department of Commerce & Insurance (TDCI) has announced that Tennessee has now licensed its 1,000th risk-bearing entity .

The TDCI pointed out that Tennessee ranks as the 9th largest captive domicile in the United States by the Insurance Information Institute’s 2022 rankings and as the 13th largest domicile in the world according to Allianz Global 2022 rankings. Further, Tennessee businesses paid a total of $2.4 billion in premiums in 2022.

“While Tennessee is one of the oldest domiciles in the U.S., it wasn’t until our captive insurance statutes were modernised in 2011 that the captive insurance market in Tennessee began to flourish,” said TDCI Commissioner Carter Lawrence. “Since then, Tennessee's captive industry has grown both in company size, licensees, and professional captive service providers every year. The support of Governor Bill Lee, the Tennessee General Assembly, and the Tennessee Captive Insurance Association has enabled captive insurance to grow steadily in Tennessee, and I am proud TDCI has been able to facilitate that development.”

TDCI’s Captive Insurance Section is responsible for regulating the Tennessee captive insurance industry.

“Businesses utilizing captive insurance pays dividends for all Tennesseans,” said TDCI captive insurance section director Mark Wiedeman. “Captive insurance helps keep costs low which in turn helps companies create new jobs and make new investments that create direct and indirect economic impact in the years ahead. Tennessee’s reputation continues to rise among risk managers, captive managers, and other captive professionals. We are grateful and look forward to continuing to assist the industry by providing a balanced and predictable regulatory environment that allows for continued captive growth.”