Tennessee Captives 2020: Domicile Facts, Figures and Milestones
Tennessee experienced exceptional captive insurance growth in 2020. Continued growth in the captive industry remains a priority for TCIA who are working in partnership with Governor Lee and Commissioner Lawrence and the TDCI team to ensure a bright future for our domicile. Tennessee has emerged as a first choice for captives worldwide and the state has become known for its deep bench of knowledgeable and responsive professionals who serve the industry.
2020 Tennessee Captive Dashboard
- 720 Risk Bearing Entities: 212 Captives, 508 Cells
- 64% increase from 2019: 18 newly licensed captives, 41 new cells
2020 Domicile and Captive Market Changes
- Increased interest in captives for property & liability coverages
- Increased interest from Tennessee owners looking to re-domesticate offshore captives and move their captives “home”
- Pre-pandemic, TDCI had already transitioned to being fully electronic resulting in a seamless transition and no customer service impacts
- Electronic document notary and virtual annual meetings were approved in response to remote work environments
- Heightened “risk awareness” across many industries
- Additional coverages added to operational captive programs to address gaps
- New captives and cells already formed or underway
- Continued growth due to the challenges of increasing traditional market rates, gaps in commercial coverage and businesses looking for more efficient means to finance risk
- Net captive growth expected to continue with similar trend to 2020
COVID19 Pandemic Impact
2021 Tennessee Captive Outlook
