Tennessee Reports Continued Captive Insurance Growth

Tennessee's captive insurance market continued its upward trajectory, with premium volume surpassing $4.6 billion, according to a recent Tennessee Department of Commerce & Insurance (TDCI) newsletter update.

The department said the total reflects a 10 percent increase from the $4.1 billion in premium volume reported a year earlier. Tennessee also recorded its sixth consecutive year of captive insurance growth.

According to the update, Tennessee licensed 5 new captives and 50 new cells by the end of 2025, bringing the state's totals to 184 captives and 705 cells. TDCI reported an 8-percent increase in active cells and a 6-percent increase in overall risk-bearing entities compared to the prior year.

"As we approach this year's halfway point, I am pleased to report to our captive insurance stakeholders that Tennessee's stability and pattern of year-over-year growth is holding steady in 2026 just as it has in years past," Carter Lawrence, commissioner of TDCI, said in the newsletter.

Commissioner Lawrence said the state's growth has been supported by its regulatory framework and customer-focused approach.

The newsletter also announced two additions to Tennessee's captive insurance team. Megan Merritt and Ashley Dorsey joined TDCI as captive insurance specialists.

Ms. Merritt recently graduated summa cum laude from Trevecca Nazarene University with a bachelor's degree in accounting and will analyze captive performance and process requests from assigned captives, according to the announcement.

Ms. Dorsey brings 15 years of auditing experience with the states of Georgia and Tennessee, including recent work auditing the Tennessee Opportunity Act.

"We're looking forward to Megan and Ashley's deeper dive into captive insurance while growing into strong analytical assets for TDCI," Mark Wiedeman, TDCI captives director, said in the newsletter.

TDCI officials said they expect captive growth trends to continue through 2026 as the state strengthens relationships with captive owners and service providers.