The Tennessee Department of Commerce and Insurance Commissioner Julie Mix McPeak announced this week that the state has licensed its 20th captive. Tennessee has had captive legislation of some kind since 1978, overhauling the system in 2011 and again on June 7th, 2013.
Captive insurance director Michael Corbett commented: “we are truly excited about the progress we have made since the revised captive laws were signed by Gov. Haslam back in 2011. With the unwavering support of Commissioner McPeak, we have put together an outstanding staff dedicated to captive formation and the unique needs to the captive marketplace. The remainder of 2013 looks especially bright and we look forward to announcing the next twenty.”
Captive International spoke to Corbett about the milestone.
How does Tennessee stay competitive as the captive domicile field gets ever-more crowded?
There are several branches to this tree: we have an up to date competitive statute, an engaged legislature, the unwavering support of Gov. Bill Haslam and Commissioner Julie Mix McPeak, an excellent team of regulators, a devoted, focused and supportive business community through the Tennessee Captive Insurance Association, and an easily accessed location as we border eight states. Finally, the new legislation-- it allows for a variety of captives to set up shop in Tennessee including Workers Compensation captives, which is exclusive to our state.
How do you see the state's role in the captive market developing going forward?
Development going forward will include a continued focus on making sure the statute remains business friendly and competitive with an equal emphasis on maintaining the regulatory oversight standards of the State of Tennessee.
Are there any changes on the horizon?
With the still unknown outcome of the effects of the Affordable Care Act, we are looking at ways to make Tennessee a first rate domicile for healthcare related captives. This is borne out by the fact the Tennessee is the rare domicile that permits Workers Compensation captives.
Tennessee, captive formations