Tennessee Captive Insurance Earns Commendation in International Awards

NASHVILLE – The Tennessee Department of Commerce & Insurance’s (TDCI) Captive Insurance Section recently earned a prestigious Highly Commended recognition as part of the 2016 U.S. Captive Services Awards.

For the third consecutive year, Tennessee was nominated for the U.S. Domicile of the Year award. Sponsored by London-based Captive Review magazine, the global captive insurance awards are open to all U.S. states with active captive legislation. Thirty-two awards were given including nine Highly Commended awards which recognize categories viewed by judges as being a particularly close call between two entries. The ceremony was held Monday, Aug. 8 at the Hilton Burlington in Vermont.

In recognizing Tennessee’s achievements, the judges said they were impressed by the growth in Tennessee’s captive section as well as the improvement in the surrounding insurance infrastructure.

The judges wrote: “The captive concept has quickly been embraced by the business community in the State and the domicile appears committed to providing solutions to the full spectrum of the market. Judges noted the growth in a range of different captive types, from those owned by large multinationals to cell companies and the middle market.”

A captive insurance company represents an option for many corporations and groups wanting greater financial control and risk management through underwriting their own insurance rather than paying premiums to third-party insurers.

“This award further confirms what we’ve known: That Tennessee’s leaders are doing the important things necessary to ensure that the state is a top-tier domicile for captive insurance companies,” said Captive Insurance Director Michael Corbett. “We’re honored to receive this award, and we look forward to hopefully taking the top prize in 2017.”

In 2011, the State of Tennessee first revamped its captive insurance regulations and has continued modernizing its regulations, including new legislation approved earlier this year. Tennessee now has 136 captive insurance companies and 327 cell companies for a total of 463 risk-bearing entities (RBEs). A recent survey estimates that Tennessee captive insurance companies have created an estimated $436 million economic impact through direct and indirect spending.

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