TDCI Reports Continued Captive Growth and Expanding Risk Trends in Tennessee

The Tennessee Department of Commerce and Insurance (TDCI) reported continued momentum in its captive insurance sector as 2025 concludes, citing sustained growth following the state’s 2011 captive law modernization. According to TDCI, Tennessee is home to 191 captive insurance companies and 708 active cells, reflecting ongoing interest from captive managers and business owners seeking stability amid broader market volatility. 

TDCI officials noted that captive formations in 2025 included modest increases in medical stop-loss and cyber coverage, with expectations for continued growth in those and other lines in 2026. The department also observed rising interest from municipal entities forming government-owned captives to manage property risks and access reinsurance markets. 

Looking ahead, TDCI anticipates ongoing volatility in the traditional insurance market, which may further drive captive adoption across a range of industries and organization sizes. The department also confirmed its participation in upcoming industry events, including the World Captive Forum in February and the Captive Insurance Companies Association Conference in March.