The Tennessee Department of Commerce & Insurance (TDCI) announced that 57 new captive insurance companies domiciled in the state 2015, which represents a 37 percent increase over 2014. The new captives are comprised of 47 pure captives, four Risk Retention Groups (RRGs), and six protected cell captives (containing 106 protected cells).
These 57 captives also include seven “redomestications” – a term used when an existing captive moves from one captive domicile to another. This is the largest group of redomesticated captives to occur since Tennessee’s captive insurance laws were revamped in 2011, according to TDCI. The redomestications came from the following jurisdictions: Montana, Delaware, South Carolina, Nevada, South Dakota, Vermont, and St. Kitts in the Caribbean.
Tennessee now has a total of 126 captives overall. Including cell companies, cumulative risk bearing entities (RBEs), Tennessee closed calendar year 2015 with 430 RBEs, a 58 percent increase over cumulative calendar year 2014.
Four years ago, before the new laws, Tennessee only had two captive insurance companies.
A captive insurance company represents an option for many corporations and groups wanting to take financial control and manage risks by underwriting their own insurance. TDCI’s Insurance Division is responsible for properly regulating Tennessee’s captive insurance industry. 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.
“The Department welcomes the new captive insurance companies to Tennessee and we continue to maintain the proper regulation of the captive insurance market,” TDCI Commissioner Julie Mix McPeak said.
TDCI estimated that the captive insurance industry’s invested assets under management in Tennessee totals about $2.6 million in revenues to be generated in Fiscal Year 2016.
Source: Tennessee Department of Insurance
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