Tennessee’s Captive Insurance Sector Marks Growth in 2023

Tennessee reports significant growth in its captive insurance sector for 2023.

The Tennessee Department of Commerce & Insurance (TDCI) has announced a year of significant growth for its Captive Insurance Section, marking progress in several key areas including the licensing of new captives and cells, an increase in risk-bearing entities, growth in pure captives, and a rise in captive premium collections.

TDCI Commissioner Carter Lawrence highlighted the state’s dedication to responsible regulation, a modern captive insurance statute, and a team of seasoned professionals as key factors contributing to Tennessee’s success in attracting captive domicile managers. “Our central location and network of first-class service providers continue to demonstrate why Tennessee is a top choice for establishing a captive insurance domicile,” Lawrence stated.

Captive insurance offers businesses an alternative to traditional insurance by allowing them to underwrite their own insurance coverage, thereby taking financial control and managing risks internally. This option has seen growing interest, as evidenced by Tennessee’s continued growth in this sector.

In 2023, the TDCI’s Captive Insurance Section reported the licensing of 25 new captives and 66 new cells, bringing the total to 164 active captives and 555 active cells operating within the state. Additionally, Tennessee now hosts 719 risk-bearing entities, marking a 37% increase overall. The number of pure or single-parent captives grew nearly 12% to 163, and premium collections rose to $2.41 billion, up from $2.12 billion in 2022.

Mark Wiedeman, TDCI Captive Section Director, attributed the growth to the department’s focus on customer service and outreach. “Our fantastic team of analysts and our commitment to building good relationships with our customers have been crucial to our sustained year-over-year growth,” Wiedeman said. “We believe these efforts will continue to attract companies looking to establish captive insurance options in Tennessee.”

Following significant modernization of Tennessee’s captive statutes in 2011, the state has experienced steady and significant growth in the captive market. For more information, interested parties are encouraged to contact the TDCI directly online at www.tn.gov/commerce, by phone at (855) 809-0069, or via email at captive.insurance@tn.gov.

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