Tennessee’s captives are booming, with the state's Department of Commerce & Insurance reporting significant growth in its captive insurance sector for 2023. Businesses are flocking to Tennessee to underwrite their own insurance, ditching traditional third-party premiums for a slice of financial control and risk management. The Volunteer State welcomed 25 new captives and an impressive 66 new cells last year.
Last year's bonanza isn't just a flash in the pan, Tennessee has tallied 164 active captives and a total of 555 active cells, this growth isn't letting up anytime soon, Commissioner Carter Lawrence touted a combination of "responsible regulation, modern captive insurance statute, and experienced professionals" as the driving force behind Tennessee's allure, stating, “Tennessee continues to prove to the world why we are a first choice when establishing a captive insurance domicile,” as reported by the Department of Commerce and Insurance.
Boasting a 37% hike in risk-bearing entities, the state now claims 719 such entities under its belt. The premium cherry on top? A hefty rise to $2.41 billion in 2023 up from the previous year's $2.12 billion. Not to be outdone, pure captives has seen a near 12% jump to 163. Mark Wiedeman, TDCI’s Captive Section Director, credited a “fantastic team of analysts” and a laser focus on customer service for the steady climb.
Since updating its captive statutes in 2011, Tennessee has become known in the insurance industry. Recent growth is good news for the state as it attracts companies from mainstream insurance markets. Wiedeman believes that continued growth, strong relationships, and customer connectivity are essential.
