Tennessee captives director hails milestone year for formations
Mark Wiedeman, director of captive insurance for the Tennessee Department of Commerce and Insurance, has described 2023 as a milestone year for the state following strong growth in formations and the state hitting the landmark of registering its 1,000th risk bearing entity (RBE).
Writing in The Captive Standard, the state's official newsletter dedicated to captives, Wiedeman, who only joined the department in February, said it had been a great year for the captive insurance team, comprising 14 dedicated captive insurance regulators.
“You may recall Tennessee hitting the milestone mark of registering its 1,000th risk bearing entity (RBE) back in May. Since then, we have included 82 additional RBE's to our rolls with plenty more in the process,” he noted.
“In the last few years, Tennessee has seen fantastic growth in the captive industry. We've seen a 37% increase in overall RBEs, bringing our total count to 683 and rising. This rise in regulated entities has increased our premium volume by 40%. This growth is also in the private sector as well.
“Working alongside the Department is the Tennessee Captive Insurance Association, who are leading the way in these efforts. We have an outstanding network of service providers in Tennessee who have all contributed greatly to the success of Tennessee as a domicile. More captive owners are choosing Tennessee as well as a result.”
Carter Lawrence, the Commissioner of the Tennessee Department of Commerce and Insurance, echoed these sentiments and noted that captives are increasingly helping companies manage challenging times.
He wrote: “As insurance regulators, we hear firsthand from insurance providers and consumers about the insecurities they face from the world around them. As you know, it's not easy trying to understand the world, its changes, and how to make sense of it especially in a hardening market.
“I am happy to say that Tennessee and our modern, forward-looking approach to captive insurance regulation has proved to be a welcome relief to companies who are seeking to establish captive domiciles here. While leaders such as my boss Governor Bill Lee and our captive legislation are the main reason that draws so many companies here, it's our team who keep them here.”
