24 December 2015Law & regulation

Tennessee licenses 100th captive insurer

Tennessee has recently licensed its 100th captive insurance company, according to the Tennessee Department of Commerce & Insurance (TDCI).

Governor Bill Haslam said: “We’ve worked hard to make Tennessee an attractive place for businesses of all sizes. In 2011 we enhanced the state’s captive insurance statute and that has resulted in huge growth for Tennessee’s captive insurance market.”

In 2011, Haslam signed the revised State of Tennessee’s Captive Statute which made the state’s existing captive insurance laws more effective, balanced, and flexible, according to the TDCI.

At that time, Tennessee had only two captive insurance companies while four years later, the state is now home to 100 captive insurance companies.

In addition to Tennessee’s 100 captive insurance companies, there are 229 cell companies that have created a combined 329 Risk Bearing Entities (RBEs). Additionally, there are five captive insurance management firms who today have a full-time presence in Tennessee.

Julie McPeak, TDCI commissioner, added: “Under the leadership of Gov. Haslam, the captive insurance industry has grown in Tennessee while the Department demonstrates proper industry oversight.”

“Our goal is to continue ensuring that the state’s captive insurance statute stays relevant to the changing needs of the business marketplace while we appropriately regulate captive insurers.”