The Tennessee Department of Commerce & Insurance (TDCI) has licensed its 200th captive insurance company.
Owned by Illinois-based farming supply store Rural King, Mattoon Insurance Company’s business lines will include property and contractual liability coverages.
Founded in 1960, Rural King currently operates 116 stores in 13 states, including Tennessee.
TDCI commissioner Hodgen Mainda said: “The licensing of Tennessee’s 200th captive is a significant landmark because it is proof of how far Tennessee has come in the relatively short time since our captive insurance regulations were revised to make Tennessee more attractive to captive insurance companies.”
Tennessee’s captive insurance laws were revamped in 2011 and, since then, the state has experienced significant growth in the captive insurance sector. According to a release from the department, Tennessee is now the seventh-largest captive domicile in the US.
Since their inception, Tennessee captive insurance companies have written more than $5.1 billion in premiums, resulting in more than $13 million in taxes and fees.
Mainda added: “Looking ahead, I believe Tennessee’s captive insurance sector will be a valuable asset in helping fulfil Governor Bill Lee’s vision of continuing the economic growth of Tennessee.”
TDCI’s captive insurance section director Jennifer Stalvey added: “2020 looks to be another impressive growth year for Tennessee’s captive sector. So far, Tennessee has already licensed four captives and six more captives are currently in the approval process. While certain markets are hardening, captives show no signs of slowing down.”
Stalvey was appointed to the role of director of captive insurance in December 2019, replacing Michael Corbett, who became director of business development.
Corbett said that when the Tennessee statute was revised in 2011, the average premium volume per captive in Tennessee was under $2 million.
“Today, the average premium volume per captive is anticipated to exceed $10 million per captive. Captive insurance helps create new jobs, new investments, and new deposits that will create direct and indirect economic impact in the years ahead,” he added.
Tennessee Department of Commerce & Insurance, TDCI, captive insurance, Michael Corbett, Jennifer Stalvey, Hodgen Mainda, Mattoon Insurance Company