Tennessee Licenses Its 200th Captive Insurance CompanyTennessee Has Licensed Four Captive Companies So Far In 2020
NASHVILLE – The Tennessee Department of Commerce & Insurance (TDCI) announces the licensing of Mattoon Insurance Company marking the creation of Tennessee’s 200th licensed captive insurance company.
Mattoon is owned by Rural King, a Mattoon, Ill. based farming supply store. Founded in 1960, Rural King currently operates 116 stores in 13 states, including Tennessee. Its captive’s lines of business will include property and contractual liability coverages.
“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,” said TDCI Commissioner Hodgen Mainda. “Looking ahead, I believe Tennessee’s captive insurance sector will be a valuable asset in helping fulfill Governor Lee’s vision of continuing the economic growth of Tennessee.”
Since Tennessee’s captive insurance laws were revamped in 2011, the Volunteer State has experienced significant growth in the captive insurance sector and is now the seventh-largest captive domicile in the United States. A captive insurance company represents an option for many corporations and groups seeking greater control over their financial risks by underwriting their own insurance instead of paying premiums to third-party insurers.
“2020 looks to be another impressive growth year for Tennessee’s captive sector,” said TDCI’s Captive Insurance Section Director Jennifer Stalvey. “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.”
Since their inception, Tennessee captive insurance companies have written over $5.1 billion in premiums resulting in over $13 million in taxes and fees. In 2018, Tennessee was recognized as the Domicile of the Year (Less Than 200 Captives).
“When the Tennessee statute was revised in 2011, the average premium volume per captive in Tennessee was under $2 million,” said TDCI’s Director of Business Development Michael Corbett. “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.”