Business is confronted by risk every day. Forming a Captive Insurance Company has become a mainstream tool for mitigating traditional risks or non-traditional risks resulting in increased control and cost reductions. Tennessee’s state of the art Captive legislation, a unique centrally located geographic location and an Insurance Department dedicated to serving the needs of all types of Captives makes for a winning combination worthy of consideration.
[Last updated: 12/07/16]
Michael A. Corbett, Director - Captive Section
"500 James Robertson Parkway, 7th Floor
Nashville, TN 37243
Name of captive legislation
Revised Tennessee Captive Insurance Act of 2011
Year legislation passed
1978; amended 2011
Statute amended in 2013, 2015 and 2016
Do you allow cell captives
Total number of licensed captives
136 Stand alone captives; 326 Cell companies; totalling 462 Risk Bearing Entities (RBEs).
Number of Risk Retention Groups or group captives
Number of single parent captives
Number of cell captives
27 Protected Cell Captives with 326 cells
Number of licences granted in the past year (2015 calendar year)
Approximate (or average) length of time to process a new captive
Captive tax rates
0.4% on first $20M and 0.3% thereafter. Reinsurance at 0.225% on first $20M and 0.15% thereafter. Aggregate premium tax maximum $100K for all captives except for protected cells companies with >10 cell whose maximum is $100K plus $5K for every cell over 10.
Minimum capitalisation rate
Pure - $250,000
Protected Cell - $250,000
Association - $500,000
Industrial Insured - $500,000
Risk Retention Group - $1,000,000
License Fee - $675; Issuance Fee - $440
Top 5 uses for captives
Medical stop loss, liability, property, cyber risk, E&O & D&O
Total premiums received by the captives
Total value of assets under management
Captive managers registered to conduct business in the domicile
Advantage Insurance Management (USA) LLC
Alliance Risk Management, LLC
Arsenal Insurance Management, LLC
Capstone Insurance Management, Ltd.
Captive Planning Associates, LTD
CIC Services, LLC
Intuitive Captive Solutions, LLC
Iroquois Captive Services, LLC
Kane (USA), Inc.
KeyState Captive Management, LLC
KRP Managers, LLC
M.R. Mead & Company, Inc.
Marsh Management Services, Inc.
Oxford Management Company, LLC - SELF MANAGED
Pro Group Captive Management Services, Inc.
Risk Matters, LLC
Risk Services, LLC
River Oak Risk
Roundstone Management, Ltd.
Somers Risk Consulting, Inc.
Strategic Risk Solutions
The Plateau Group - SELF MANAGED
The Taft Companies, LLC
USA Risk Group (South), Inc.
WACO - SELF MANAGED
Willis Management, Ltd.