Tennessee Captive Insurance

Tennessee Department of Commerce & Insurance Captive Insurance Section

One of the first states to establish captive insurance legislation, Tennessee is now a first choice for new captive insurance company formations—or those looking to redomesticate their captive. Today, over 500 active risk-bearing entities (163 captive insurance companies, 342 protected cells) call Tennessee Home.

They chose Tennessee because of our unique advantages including:

  • An award-winning regulatory team with credentialed, service-oriented professionals
  • Virtually all captive licensing types are allowed in Tennessee under our modernized captives' statutes.
  • A pro-business environment with a central location in the US as a transportation hub
  • Crucial infrastructure necessary to establish or operate your captive including captive managers, attorneys, accountants, and actuaries.
  • An ongoing focus on ensuring our captive statutes are up-to-date, competitive and provide a strong basis for balanced and consistent regulation

Tennessee offers cities like Memphis, Nashville, Knoxville, and Chattanooga, as well as cultural amenities, vibrant nightlife and entertainment, and unmatched recreational activities.

ART programs include the following.

  • Single-Parent Captives
  • Group Captives
  • Risk Retention Groups
  • Segregated Cell—Sponsored Captives
  • Branch Captives
  • Producer-Owned Captives
  • Not-for-Profit Captives
  • Special Purpose Captives
  • Insurance-Linked Securities

Visit the Tennessee Department of Commerce & Insurance Captive Insurance Section website.

Company Contacts

Director, Captive Insurance Section
(615) 253–9914
Assistant Director, Captive Insurance Section
(615) 253–1178
Assistant Director, Captive Insurance Section
(615) 741–3805

Mailing Address:
Davy Crockett Tower, 10th Fl.
500 James Robertson Pkwy.
Nashville, TN 37243

Captive Domicile Summary

Tennessee, which is one of the oldest domestic captive domiciles, has, in recent years, become one of the fastest growing.

Over the last 7 years, the number of active captives in Tennessee has more than doubled, jumping from 68 in 2014 to 153 at the end of 2021.

Captive premium volume has increased even more. In 2021, premium volume topped $1.7 billion, a huge increase compared to 2015 when captives' premium volume was just under $670 million.

That initial growth, experts say, has been fueled by sweeping improvements state legislators have made to the statute, and ongoing improvements in the captive law continue to support the momentum.

Included in the first round of changes, enacted in 2011, were revisions to the 1978 law, which, among other things, set new captive minimum capital and surplus requirements, allowed captives to provide workers compensation coverage if certain conditions were met, as well as mandating that premium taxes paid by captives be used to help fund the state's captive regulation.

And positive legislative changes have continued. For example, in 2016, lawmakers approved a measure that gives a 1-year premium tax exemption for captives that redomesticate from non-US domiciles. Other changes include clarification that the assets of any individual cell captive cannot be seized as part of litigation against another cell.

The 2016 measure also gave most captives more time to file their annual reports.

And legislative changes have continued. For example, legislation passed in 2017 includes provisions stipulating that dormant captives only have to maintain capital and surplus of $25,000 and are exempt from premium taxes, as well as slashing financial penalties on captives that do not make premium tax payments on time.

More recently, under legislation passed last year, captives, with the approval of the state insurance commissioner, can invest capital and surplus, in various approved securities, providing for better returns on investments.

And last year, Tennessee lawmakers passed legislation that reduced the minimum capital requirements for protected cell captives to $100,000 from $250,000 and allows captives to provide parametric insurance.

With those enhancements to the law in place, captive growth was immediate. For example, just 4 months after the passage of the 2011 legislation, HCA Inc., a big Nashville-based hospital system, set up a captive in the state.

And growth has continued ever since. At the end of 2021, Tennessee had 153 active captives. That compares to just 2 before the 2011 legislation was passed.

"Tennessee really has come back," said Art Koritzinsky, captive advisory leader for the Americas with Marsh Captive Solutions in Norwalk, Connecticut.

It isn't only the legislative updates that have led organizations to set up captives in Tennessee. Just as important is the top quality and accessibility of Tennessee's captive regulators.

"They are highly accessible and very easy to work with," said Andy Rhea, president of Align Risk Solutions alternative risk management company in Nashville.

In addition, Tennessee has a new top captive regulator. In November 2021, Jonathan Habart, who had been the Captive Insurance Section's assistant director, was promoted to director.

"While we interviewed many capable candidates during our national search, Jonathan proved to be the strongest candidate for the position because of his proven leadership, institutional and regulatory knowledge, and his close working relationships with Tennessee's numerous captive companies and the Tennessee Captive Insurance Association," TDCI Commissioner Carter Lawrence said in a statement.

"I am thrilled to welcome Jonathan as the new Tennessee captive director. He is extremely well qualified and he has the right combination of expertise and demeanor to be an outstanding director," Tennessee Captive Insurance Association President Kevin Doherty also said in a statement.

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The Tennessee Captive Insurance Association sponsors periodic events on captive issues as well as serves as a networking vehicle, while also sponsoring an annual meeting.

 "The industry is also constantly evolving so it is important that captive owners and service providers stay current with the latest developments," the TCIA says.

For more information, call (888) 668–3188.

Captive Domicile Statistics

Total Captive Count* Tennessee
Year Captives
2021 153
2020 146
2019 139
2018 136
2017 139
*Includes active captives and excludes inactive and cell captives.
Captives' Gross Written Premiums Tennessee
Year Premium Volume
2021 $1.7 billion
2020 $1.6 billion
2019 $1.5 billion
2018 $1.2 billion
2017 $1.2 billion