View this article online: https://www.insurancejournal.com/news/southeast/2016/07/01/418824.htm
Tennessee-based captive insurance companies have created an estimated $436 million economic impact through direct and indirect spending related to new jobs, investments, and deposits, according to results of a recent annual survey given by the Tennessee Department of Commerce & Insurance’s (TDCI) Captive Insurance Section.
The survey, which was completed by 176 captive insurance professionals, shows the direct economic impact of captive insurance on Tennessee, specifically when it comes to investment and job creation, according to TDCI. According to the survey, captives have resulted in a total direct capital investment of $410 million; total direct and indirect spending exceeding $25 million; and the creation of 82 full-time white collar jobs in Tennessee. The survey results rely on information through the end of 2015 (see chart).
“Tennessee now ranks among the ‘best in class’ captive domiciles – both nationally and internationally – thanks to the leadership of Governor Bill Haslam and Commissioner Julie Mix McPeak who had the foresight to revamp the state’s captive legislation in 2011,” said Captive Insurance Director Michael Corbett. “The Captive Insurance Survey offers conclusive proof that Tennessee continues to see direct and long-lasting benefits from that decision five years ago.”
TDCI’s Captive Insurance Section is responsible for regulating Tennessee’s captive insurance industry. A captive insurance company represents an option for many corporations and groups that want to take financial control and manage risks by underwriting its own insurance rather than paying premiums to third-party insurers.
The Captive Section has completed two economic development surveys; one at the end of 2013 and another at the end of 2015. Both surveys include the economic activities of captive owners, managers, CPAs, actuaries, attorneys and financial service providers in Tennessee.
Tennessee recently updated the captive insurance regulations to its Revised Tennessee Captive Insurance Act of 2011. Currently, Tennessee is home to 133 captive insurance companies and 321 cell companies for a total of 454 risk-bearing entities (RBEs).
Source: Tennessee Department of Commerce & Insurance