Tennessee saw 18 new captive insurance company formations in 2020 as well as 41 new cells, according to the Tennessee Captive Insurance Association (TCIA).
That constituted a 67 percent increase on the growth seen in 2019, the TCIA said. Tennessee now has 720 risk bearing entities, including 212 captives and 508 cells.
The state has seen increased interest in captives for property and liability coverages, as well as from Tennessee-based parent companies looking to redomesticate offshore captives and move their captives home, the TCIA said. A number of captives have added new lines of coverage to Tennessee captives to address coverage gaps.
TCIA noted it is working in partnership with Governor Lee and Commissioner Lawrence and the Tennessee Department of Commerce and Insurance (TDCI) team to ensure a bright future for the state’s captive insurance community.
Tennessee remains bullish about the future for the sector. TCIA said it expects net captive growth to continue in 2021 at a similar rate to what it experienced in 2020.
TDCI had already transitioned to being fully electronic even before the COVID-19 pandemic hit, resulting in a seamless transition and no customer service impacts. Since then, electronic document notary and virtual annual meetings have been approved in response to remote work environments.
Tennessee Captive Insurance Association, TCIA, Tennessee Department of Commerce and Insurance, TDCI