Tennessee’s Captive Insurance Surge Recognized with National Award
Award Spotlights Volunteer State Success with Captive Insurance CompaniesNASHVILLE – Tennessee was recently honored for its growth in the captive insurance marketplace with the Domicile of The Year (Less Than 200 Captives) award at the 2018 U.S. Captive Review Awards. Open to all states with active captive legislation, the awards ceremony highlights captive insurance regulators and service providers who have excelled in the past year.
“This award is proof that the work we began in 2011 to modernize Tennessee’s captive insurance regulations was a game-changer that will benefit Tennessee for years to come,” said Tennessee Governor Bill Haslam. “Our captive legislation has led to more companies locating here, the creation of nearly 100 captive insurance-related jobs in our state, and has resulted in huge growth for Tennessee’s captive insurance market.”
In bestowing the 2018 Domicile of The Year (Less Than 200 Captives) award, the contest’s judges cited Tennessee’s growth, specifically during the past two years, and singled out the Volunteer State’s ability to attract “more large local corporations to bring their captives home, with annual premium growth particularly impressive last year.” The awards ceremony was held in Burlington, Vt. and was sponsored by London-based Captive Review magazine.
“This award represents years of work to transform Tennessee from a captive insurance also-ran into one of the first states mentioned when companies discuss where to establish a captive insurance company,” said TDCI Commissioner Julie Mix McPeak. “As proof of our continued success, Tennessee recently licensed its 171st captive insurance company. Last year, domestic captive insurance companies exceeded $1 billion in written premiums in 2017 for the first time. Looking ahead, we must continue to evolve in order to ensure that we stay relevant to the changing needs of the marketplace.”
The prestigious award marks a new level of recognition for TDCI and its regulation and promotion of captive insurance in the state. Previously, Tennessee has been a four-time finalist for U.S. Captive Domicile of the Year. A captive insurance company (commonly called a “captive”) represents an option for many corporations and groups wanting to take financial control and manage their risks by underwriting their own insurance.
“It’s an incredible honor for Tennessee,” said Michael Corbett, Director of the Captive Section for TDCI. “It represents the enormous support of Governor Haslam, Commissioner McPeak and the entire community of captive owners, service providers and regulatory staff that comprise Tennessee’s captive industry. We plan to continue to be worthy of the title!”
Tennessee’s captive industry has grown both in company size and licensees every year since 2011. The 171st captive insurance company licensed by TDCI in August represented the 600th risk-bearing entity (RBE) authorized to administer captive insurance. The state’s RBE total comprises companies licensed by TDCI as well as the approved “cells” that may transact insurance business within the company’s organizational structure.
Tennessee continues to attract new companies most recently from Bermuda, Delaware, Montana, Nevada, South Carolina, South Dakota, Vermont, and Cayman, St. Kitts and Nevis in the Caribbean. The captive insurance industry has created numerous high-paying jobs in Tennessee with total direct and indirect spending and investment approaching an estimated $700 million annually, including an estimated $3.1 million in state revenues projected to be generated in Fiscal Year 2018.
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