The Tennessee Captive Insurance Association has revealed a 64 per cent increase in licensed entities on its 2019 figures, with 18 new captives and 41 new cells in 2020.
The licensed captives and cells bring Tennessee’s total risk bearing entities to a total of 720, which include 212 captives and 508 cells.
At the end of 2019, the Volunteer state had a total of 192 captive insurance companies and 460 cell companies.
During 2020, the state noted an increased interest in captives for property and liability coverages.
In addition, there was also a rise in the number of Tennessee owners looking to redomesticate offshore captives and move their captives back to the state.
In December 2020, International Paper, Memphis-based global fibre-based packaging, pulp and paper products, relocated its captive insurance company from Vermont to Tennessee, marking the state’s 700th risk bearing entity.
The Tennessee Department of Commerce and Insurance (TDCI) reveals that new captives and cells have already been formed or currently underway.
The TDCI also predicts continued growth due to the challenges of increasing traditional market rates, gaps in commercial coverage and businesses looking for more efficient means to finance risk.
Finally, TDCI says it expects net captive growth to continue with a similar trend to 2020.
In a recent interview with Captive Insurance Times, Belinda Fortman, director of the captive insurance section at TDCI, discusses the state’s latest milestone and her vision for the captive market in 2021.
Fortman commented: “My vision for 2021 is to continue to build on my relationships with industry leaders in order to create successful captive insurance programmes and to provide excellent customer service through focusing on an open-door policy.”
