Tennessee Licenses 200th Captive Insurance Company
The Tennessee Department of Commerce & Insurance (TDCI) is marking the licensing of its 200th captive insurance company, Mattoon Insurance Co., making the state the seventh-largest captive domicile in the U.S., according to a statement from the department.
Mattoon is owned by Rural King, a Mattoon, Ill. based farming supply store. Founded in 1960, Rural King currently operates 116 stores in 13 states, including Tennessee. Its captive’s lines of business will include property and contractual liability coverages.
According to TDCI’s Captive Insurance Section Director Jennifer Stalvey, Tennessee has already licensed four captives so far in 2020 and six more captives are currently in the approval process.
“While certain markets are hardening, captives show no signs of slowing down,” she said.
Tennessee revamped its captive insurance laws in 2011 and the state has since experienced significant growth in the captive insurance sector, TDCI said. A captive insurance company represents an option for many corporations and groups seeking greater control over their financial risks by underwriting their own insurance instead of paying premiums to third-party insurers.
Since their inception, Tennessee captive insurance companies have written over $5.1 billion in premiums resulting in over $13 million in taxes and fees. In 2018, Tennessee was recognized as the Domicile of the Year (Less Than 200 Captives).
TDCI’s Director of Business Development Michael Corbett said the average premium volume per captive today is anticipated to exceed $10 million compared with under $2 million per captive when the Tennessee statute was revised in 2011.
“The licensing of Tennessee’s 200th captive is a significant landmark because it is proof of how far Tennessee has come in the relatively short time since our captive insurance regulations were revised to make Tennessee more attractive to captive insurance companies,” said TDCI Commissioner Hodgen Mainda. “Looking ahead, I believe Tennessee’s captive insurance sector will be a valuable asset in helping fulfill Governor Lee’s vision of continuing the economic growth of Tennessee.”
Source: Tennessee Department of Insurance (TDCI)