Tennessee's captive insurance sector reported US $2.41 billion in premiums in 2023, showing a 13.6 per cent increase compared to 2022.
The state licensed 25 new captives and 66 new cells last year, bringing the total to 164 captives and 555 cells, according to data from the Tennessee Department of Commerce and Insurance’s (TDCI’s) Captive Insurance Section.
In the same year, the risk-bearing entities in Tennessee rose by 37 per cent, totaling 719, while single-parent captives surged by 12 per cent, numbering 163.
Mark Wiedeman, TDCI Captive Section director, states: “The growth we saw in Tennessee in 2023 is a direct result of our team of analysts and our focus on customer service and connecting with prospective customers.
“Sustained year-over-year growth, good relationships and connectivity with our customers will continue to incentivise other companies to establish a captive in Tennessee for their risk-financing needs.”
After the modernisation of Tennessee’s captive statutes in 2011, the domicile has seen growth in the captive market.
Tennessee is the ninth largest captive domicile in the US, according to the Insurance Information Institution’s 2022 rankings. It is also the thirteenth largest in the world, according to Allianz Global 2022.
Carter Lawrence, TDCI commissioner, says: “In Tennessee, our focus on responsible regulation, our modern captive insurance statute, and our roster of seasoned professionals continue to create a difference for captive domicile managers who might not find that combination when looking elsewhere.
“Taken together with our central location and our network of service providers, Tennessee continues to prove to the world why we are a first choice when establishing a captive insurance domicile.”
