Championing captive insurance growth

After a recap of his career, Michael Corbett of Pinnacle Financial Partners describes to Captive International how the firm continues to drive innovation and support clients in their growth journeys.

“Captives play a vital role for businesses and the economy, and it’s a gratifying opportunity to use my experience and expertise to support and foster their ongoing growth and development,” says Michael Corbett, senior vice president at Pinnacle Financial Partners.

“I’ve worked to shift this mindset, showing that bankers can be instrumental in promoting captives.” Michael Corbett

Corbett has been recognised as the Individual Banker of the Year in the Banking Services category at Captive International’s US Awards. These awards highlight Corbett’s significant influence within the industry. This is the second time he has received this recognition, first earning the accolade in 2022. The awards celebrate excellence, innovation, and commitment among the top service providers in the US captive insurance industry.

Corbett’s expertise has been widely acknowledged, including his induction into the Captive Review Hall of Fame in 2021 and multiple mentions in the Power 50 list. He was recognised as the 2015 Captive Professional of the Year, underscoring his long-standing influence and commitment to the captive insurance sector.

“I’m grateful that my work in captives over the years has made a difference, and that the relationships I’ve built have led to my nomination,” he said. “I’m grateful to former Governor Bill Haslam for his vision in establishing Tennessee as a nationally recognised captive domicile and to the leadership at Pinnacle for giving me the opportunity to serve private sector clients. 

“Applying my experience to offer effective guidance to commercial clients at Pinnacle has been a fulfilling way to contribute to the captive industry.”

Recognition and impact

Corbett’s journey in captive insurance has been marked by significant milestones. Alongside his role at Pinnacle, he is president of the Tennessee Captive Insurance Association (TCIA) while continuing his duties as senior vice president, and he retains his role as president of the Apex Captive Insurance Company.

With more than 40 years of experience in financial services, Corbett’s tenure at Pinnacle began in March 2020. He brought with him extensive knowledge, having previously served as the director of captive insurance for the State of Tennessee from 2011 to 2019. He and his team were instrumental in transforming Tennessee into a first-class domicile for captive insurance companies.

Before his time with the state, Corbett held senior roles at Morgan Keegan and UBS in Nashville, Tennessee, further honing his expertise in institutional investment management and advising.

“When the state of Tennessee decided to revise its captive insurance legislation, I joined as the chief regulator and held that position for about nine years. During my tenure, we licensed over 700 captives, generating around $2.5 billion in annual premiums,” he recalled.

“In early 2020, I had lunch with Sam Belk, an old banker friend, who brought along his chairman Rob McCabe. Rob asked me what captives were, so I explained that it involved owning your own insurance company. He was intrigued and asked about the impact. I mentioned that the captives we licensed represented about $2.5 billion in annual premiums deposited in banks.

“Rob was surprised and asked if Pinnacle Bank could enter this market. I said it was possible. Soon after, I joined Pinnacle Bank to help it establish and grow its captive insurance services.”

Corbett noted that McCabe was instrumental in supporting the initiative and understood that for the bank to succeed in the captive insurance market, it would need to be as committed as its competitors. Pinnacle’s strategy focuses on delivering comprehensive services, giving clients access to a complete suite of financial products customised to meet their business and personal needs. Captives complement this approach, enabling Pinnacle to strengthen relationships with clients by providing innovative solutions that align with their business goals.

Strategic growth 

Under Corbett’s guidance, Pinnacle Financial Partners has emerged as a major player in the captive insurance market. When he joined in 2020, he was tasked with building a programme to compete with established players such as Comerica, Toronto-Dominion, and Wells Fargo. With extensive contributions by Tom Blanchard in Knoxville and David Shamblin in Chattanooga the initial team of captive experts was established.

To position Pinnacle as a serious contender, Corbett ensured that the bank fully understood the intricacies of captive insurance, including managing premium accounts, claims, bank accounts, letters of credit, and regulatory requirements. Pinnacle’s commitment to developing expertise in this field has paid off, with the bank now managing over a billion dollars in deposits for captive insurance clients.

Pinnacle operates in major markets across the Southeast, including Nashville, Knoxville, Chattanooga, Memphis, Charleston, Charlotte, Atlanta, Jacksonville, and Washington DC.

Corbett and his team are focused on continuing to grow the captive services division, with one of their key objectives being to support captives in the reinsurance area. This involves becoming an approved bank for fronting carriers that provide insurance paper but require collateralisation through Regulation 114 trusts to mitigate risk. Achieving this status is a long-term project that demonstrates Pinnacle’s dedication to becoming a leading bank in the captive insurance space.

Pinnacle provides a comprehensive suite of financial services, including banking, investment, trust, mortgage, and insurance products tailored for businesses and individuals.

“Looking ahead, we plan to continue building on our success and ensuring Pinnacle’s long-term commitment to the captive insurance space. One of our key challenges is gaining approval from fronting carriers such as Chubb, Hartford, and Travelers, as they often prefer larger, more established banks,” Corbett continued.

“Pinnacle is an NAIC-approved bank, but we are not on all these carriers’ preferred lists. Achieving these approvals requires time, effort, and building strong relationships with the carriers.”

As the bank moves forward, educating customers about captive insurance and advocating for fair treatment by the Internal Revenue Service will be essential. Captive insurance is a powerful tool for businesses, and it’s important to work with local legislators to promote and protect this industry.

Corbett added that Pinnacle Bank’s approach is rooted in a commitment to providing comprehensive solutions for clients. “The founders’ vision was to offer everything clients might need, both personally and professionally. This means expanding into new areas, such as captive insurance, ensuring the bank can meet clients’ needs without sending them elsewhere. 

“By offering a full suite of services, the bank strengthens client relationships and enhances its understanding of clients’ financial needs,” he said.

Future vision

“As I near the later stages of my career, we are focused on hiring capable young professionals to carry the torch for the next generation,” Corbett explained.

“We’ve made efforts to change the perception of the role bankers can play in the captives sector. Service providers often overlook bankers as a valuable resource, but they are trusted advisors who have direct access to key C-suite decision-makers, which brokers and other service providers may not always have.

“I’ve worked to shift this mindset, showing that bankers can be instrumental in promoting captives,” he said.

Looking ahead, Corbett’s focus remains on expanding Pinnacle’s captive services while strengthening relationships with existing clients. His leadership roles and dedication to educating the industry and advocating for captive insurance align with Pinnacle’s goals of remaining at the forefront of the industry.

Acknowledging the support he’s received from industry colleagues, he said: “This is a unique industry where, despite being competitors, we genuinely support and help one another.”

Michael Corbett is senior vice president at Pinnacle Financial Partners. He can be contacted at: michael.corbett@pnfp.com

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