Tennessee Department of Commerce and Insurance
As he takes up his new role at the Tennessee Department of Commerce and Insurance, Joshua Clark discusses his plans to promote the state’s captive sector
What plans are in place to help promote captive insurance within the state?
This year has certainly created some challenges for the traditional conference circuit and in-person meetings. However, it has also created some great opportunities for innovation.
Through a variety of techniques, both online and offline, our plan revolves around promoting two primary reasons to do business in Tennessee. First Tennessee’s excellent geographic location being centrally located and close to the supermajority of the population in the US. Second, are the core values of the Tennessee captive section including expertise, customer service and innovation. Additionally, Nashville serves as one of the top travel and tourist destinations in the US.
It’s an exciting time to be in Tennessee. Governor Bill Lee and Commissioner Hodgen Mainda fully support the captive industry and have put together a team, led by industry veteran Belinda Fortman, that encompasses unmatched expertise and is on par with any other domicile across the globe.
What key trends are you seeing right now in Tennessee’s captive space?
The hardening insurance market – combined with a pandemic – is causing businesses to take a closer look at their risks. It is not uncommon at the renewal of insurance policies for businesses to see significant increases in premium quotes across multiple lines of coverage. Therefore, risk managers and c-suites are seeking alternative solutions to better control costs while continuing to properly protect their lines of business.
Due to this activity, Tennessee continues to welcome the creation of new captives and captives moving to Tennessee from other states, as well as international domiciles. Additionally, we continue to see expansion, or organic growth, within captives already formed. This includes traditional and non-traditional coverages and stretches across multiple industry segments.
I credit the service providers, and the captive insurance industry in general, for being the leader in innovative ideas and solutions when it comes to supporting businesses here in the volunteer state, across our country and abroad.
In February, Tennessee announced it licensed their 200th captive - how does Tennessee plan to keep increasing its captive figures?
We have continued to grow since reaching the 200 mark and I look forward to our continued captives expansion in the future. This is one outcome of our core values that ensure what’s being promoted to the market continues to be the customer experience when they choose to create a captive within Tennessee.
Growth can only be supported with the proper system in place and through the expertise and leadership of our captive section director Belinda Fortman and Commissioner Mainda, we continue to raise the bar.
As our team grows, we are always finding solutions to improve our processes.
This will ensure that our customers continue to get the expert support they deserve and have come to expect when choosing Tennessee.
What are the biggest challenges for the captive industry right now?
In the current market, there are several factors affecting the captive industry that all create unique challenges for c-suites and risk managers. Now is the time to have this conversation.
Prior to the pandemic, we started seeing the hardening of the market with premium increases occurring across nearly all lines of coverage. Additionally, the pandemic has caused many to re-evaluate not only their insurance programmes but their overall operating strategy. All this boils down to businesses seeking some form of certainty during very uncertain times.
The good news is the captive insurance industry is designed to do just that and the many amazing service providers across Tennessee and the country are primed and ready to help businesses navigate through these unprecedented times.
Is Tennessee planning on making amendments to the existing captive law?
Tennessee is always evaluating opportunities to enhance its captive law to better support businesses and the industry. Discussions continue to be ongoing about what this may look like for 2021 and beyond.
However, to date, there is nothing publicly that we’ve announced.
That said, we believe Tennessee is the best domicile in the country for captives and we remain committed to a business-friendly environment, a stable and predictable regulatory environment and a competitive and attractive place for captives to domicile.
Finally, what will you be working on within the captive market in the next 12 months?
Focusing on our mission and casting a big vision. We have a great opportunity for outreach and education regarding Tennessee’s captive regulatory environment and I will continue to partner with key stakeholders like the Tennessee Captive Insurance Association (TCIA), and others, to explore innovative ways to promote Tennessee as a top tier domicile domestically and internationally.
