The Tennessee Department of Commerce & Insurance (TDCI) has reported its fifth consecutive year of growth in the captive insurance sector, with notable increases in both active cells and risk-bearing entities in 2024.
At the end of 2024, Tennessee licensed 11 new captives and 94 new cells, bringing the state’s total to 182 captives and 657 active cells.
This marks a 17 per cent rise in active cells and a 14.7 per cent overall growth in risk-bearing entities compared to the previous year.
Premiums also saw a sharp increase, reaching US$2.9 billion in 2024, up from US$2.41 billion in 2023.
TDCI Commissioner Carter Lawrence attributes the continued expansion to a combination of strong regulatory oversight and a pro-business environment.
“By combining responsible regulation, a modern captive insurance statute, and a team of customer-focused professionals, Tennessee continues to distinguish itself as the perfect place to establish a captive insurance domicile,” Lawrence says.
TDCI’s Captive Insurance section oversees the industry, which allows businesses to self-insure rather than rely on third-party insurers. Since Tennessee modernised its captive insurance statutes in 2011, the market has experienced steady growth.
Mark Wiedeman, captive section director at TDCI, says: “I commend our fantastic team of analysts who made customer service and connecting with prospective customers their focus in 2024 and beyond.
“Sustained year-over-year growth, good relationships, and connectivity with our customers will continue to incentivise other companies to establish captives in Tennessee for their risk-financing needs.”
