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HomeNewsTennessee Adds 100th Captive Insurance Company

Tennessee Adds 100th Captive Insurance Company

Tennessee Department of Commerce and InsuranceNashville, TN – The Tennessee Department of Commerce and Insurance (TDCI) has announced the licensing of Tennessee’s 100th captive insurance company.

A captive insurance company (called a “captive”) represents an option for many corporations and groups wanting to take financial control and manage risks by underwriting their own insurance rather than paying premiums to third-party insurers.

TDCI’s Insurance Division is responsible for properly regulating Tennessee’s captive insurance industry.

In 2011, Tennessee Governor 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. 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.”

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 five captive insurance management firms who today have a full-time presence in Tennessee.

“Under the leadership of Governor 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.”

As Tennessee has attracted captive insurance companies, the international captive insurance industry has taken notice of Tennessee’s growing captive insurance market. For the past two years, Tennessee has been a finalist for “Captive Domicile of the Year” by London-based Captive Review Magazine.

Earlier this year, Captive Section Director Michael Corbett was named Captive Professional of the Year during the annual U.S. Captive Services Awards. Corbett has recently been named to the magazine’s “Power 50” list for the second time.

“We are building something really special here in Tennessee,” Corbett said.  “When Governor Haslam and Commissioner McPeak launched the Captive Section, they understood that we had to be responsive to the needs of captive insurance company owners.  The owners of 329 RBEs had choices, and they chose Tennessee. I believe these companies determined that a state government partner invested in their success made Tennessee the obvious choice. Tennessee is a great place to do business.”

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

“Iroquois Captive Services is proud to have been a part of the 100th licensed captive insurance company in Tennessee,” Iroquois Captive Services Managing Director Andy Rhea said. “We are thankful for all of the hard work Commissioner McPeak, Captive Director Michael Corbett and his staff have put forth to make Tennessee one of the leading domiciles in the country.”

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