Tennessee Captive Insurance Section Sees Growth in Four Key Areas in 2023

Monday, March 25, 2024 | 10:13am

NASHVILLE – The Tennessee Department of Commerce & Insurance’s (TDCI) Captive Insurance Section is proud to report another robust year of growth as the Volunteer State saw increases in new captives, risk-bearing entities, pure captives, and collection of captive premiums.

“In Tennessee, our focus on responsible regulation, our modern captive insurance statute, and our roster of seasoned professionals continues to create a difference for captive domicile managers who might not find that combination when looking elsewhere,” said TDCI Commissioner Carter Lawrence. “Taken together with our central location and our network of first-in-class service providers, Tennessee continues to prove to the world why we are a first choice when establishing a captive insurance domicile.”

TDCI’s Captive Insurance Section is responsible for regulating the Tennessee captive insurance industry. Captive insurance represents an option for businesses that want to take financial control and manage risks by underwriting their own insurance coverage rather than paying premiums to third-party insurers.

Among the highlights in 2023 for TDCI’s Captive Insurance Section:

  • At the end of 2023, 25 new captives and 66 new cells were licensed in Tennessee. Tennessee currently has 164 active captives and 555 active cells.  
  • Tennessee has 719 risk-bearing entities in 2023 – a 37% increase overall.
  • Our number of pure or single parent captives grew by nearly 12% to 163.
  • Premiums rose in 2023 to $2.41 billion compared to $2.12 billion that was collected in 2022.

“The growth we saw in Tennessee in 2023 is a direct result of fantastic team of analysts and our focus on customer service and connecting with prospective customers,” said TDCI Captive Section Director Mark Wiedeman. “I firmly believe that sustained year-over-year growth, good relationships, and connectivity with our customers will continue to incentivize other companies to use establishing a captive in Tennessee for their risk-financing needs.” 

After a significant modernization to Tennessee’s captive statutes in 2011, Tennessee has seen steady and significant growth in the captive market.

For details, contact us directly online, by phone at (855) 809-0069 or email at captive.insurance@tn.gov.