Tennessee Adds 100th Captive Insurance Company

The Tennessee Department of Commerce & Insurance (TDCI) announced the licensing of Tennessee’s 100th captive insurance company on Dec. 22.

In 2011, Gov. Bill Haslam signed the revised State of Tennessee’s Captive Statute which made the state’s existing captive insurance laws more effective, balanced, and flexible, according to a statement from TDCI. At that time, Tennessee had only two captive insurance companies. Four years later, Tennessee is now home to 100 captive insurance companies.

“We’ve worked hard to make Tennessee an attractive place for businesses of all sizes,” Haslam said. “In 2011 we enhanced the state’s captive insurance statute and that has resulted in huge growth for Tennessee’s captive insurance market.”

TDCI said Tennessee’s growing captive insurance industry has created numerous jobs and assets under management in Tennessee and an estimated $2.6 million in revenues projected to be generated in Fiscal Year 2016. In addition to Tennessee’s 100 captive insurance companies, there are 229 cell companies that have created a combined 329 Risk Bearing Entities (RBEs). Additionally, there are now five full-time captive insurance management firms in Tennessee.

“Under the leadership of Gov. Haslam, the captive insurance industry has grown in Tennessee while the Department demonstrates proper industry oversight,” TDCI Commissioner Julie Mix McPeak said. “Our goal is to continue ensuring that the state’s captive insurance statute stays relevant to the changing needs of the business marketplace while we appropriately regulate captive insurers.”

Iroquois Captive Services, which started in Nashville in 2013, manages the 100th captive insurance company formed in Tennessee.

Source: Tennessee Department of Commerce and Insurance