Tennessee Reports 6th Year of Captive Insurance Growth

Tennessee recorded its 6th consecutive year of growth in its captive insurance sector in 2025, driven by new formations, rising premiums, and continued expansion in risk-bearing entities, according to the Tennessee Department of Commerce & Insurance (TDCI). 

The state licensed 5 new captives and 50 new cells during the year, bringing the totals to 184 captives and 703 cells. TDCI reported an 8 percent increase in active cells and a 6 percent rise in overall risk-bearing entities compared to 2024. 

Premium volume also grew significantly, reaching $4.2 billion in 2025, up from $2.1 billion the prior year. 

"By combining responsible regulation, a modern captive insurance statute, and a team of customer-focused professionals, Tennessee continues to distinguish ourselves among captive domicile managers as the perfect place to call home when establishing a captive insurance domicile," said Carter Lawrence, commissioner of TDCI. "I am optimistic that the growth trend we've seen in little over half a decade will continue into the future as Tennessee's reputation as a first-in-class choice for captive domicile managers grows."

TDCI's Captive Insurance Section oversees the regulation of the state's captive insurance market, which allows businesses to manage risk by underwriting their own coverage rather than relying on third-party insurers. Officials credited long-term statutory updates, including a modernization effort in 2011, with supporting sustained market expansion. 

"I commend our fantastic team of analysts who made customer service and connecting with prospective customers their focus in 2025 and beyond," said Mark Wiedeman, director of TDCI's Captive Insurance Section. "I firmly believe that sustained year-over-year growth, good relationships, and connectivity with our customers will continue to incentivize other companies to use establishing a captive in Tennessee for their risk-financing needs."