Tennessee Celebrates 700th Risk Bearing Entity Milestone
Tennessee Captive Insurance Association celebrates the announcement of International Paper’s captive insurance company relocation to Tennessee, becoming the state’s 700th risk bearing entity (RBE). The Memphis-based global packaging, pulp and paper products company has worked with the state for the past six years and expressed excitement at celebrating this milestone with Tennessee.
“This is very exciting news for Tennessee, and it represents the culmination of years of effort by the Tennessee General Assembly, the Department of Commerce and Insurance and the members of the captive insurance industry in Tennessee all working together in a productive public/private partnership. The captive market is as strong as ever in Tennessee and TCIA looks forward to many more captives being formed in Tennessee in the coming years,” said Tennessee Captive Insurance Association President Kevin Doherty.
The arrival of International Paper’s captive insurance company is a milestone for Tennessee as it represents the Volunteer State’s 700th risk bearing captive insurance entity. Tennessee now has 211 standalone captives and 489 cell captives. Tennessee is currently ranked as the 7th largest captive domicile in the United States and 12th largest domicile in the world.
“International Paper’s relocation of its captive insurance company is the latest in a string of accomplishments for TDCI’s Captive Insurance Section and proof that Tennessee has the right mix of leadership and regulation to attract globally recognized brands,” said TDCI Captive Insurance Section Director Belinda Fortman. “Tennessee has proven that our business friendly environment combined with a stable and predictable regulatory environment make us the ‘gold standard’ of the South.”
Captive insurance companies have found a receptive home in Tennessee for decades. Tennessee was one of the first states to adopt captive legislation in 1978. After its leaders modernized the state’s captive rules in 2011, Tennessee emerged as a first choice for companies looking to create a captive insurance company. Tennessee is known for its active TCIA membership, a deep bench of full-time professional captive service providers and flexible, responsive regulators who serve the needs of Tennessee’s captive companies.
“The creation of the 700th risk bearing entity is an event that we proudly share with Governor Lee’s team and the entire State of Tennessee,” said TDCI Commissioner Carter Lawrence. “Governor Lee’s leadership has helped attract new captive insurance companies to Tennessee while Tennesseans make the Volunteer State a place where businesses want to start a captive insurance company or relocate their existing captive insurance company from other states and from countries around the world.”
Tennessee captives have written over $6.4 billion in premium and collected over $16 million in taxes and fees. The captive insurance sector has an estimated economic impact in Tennessee of $31 million in direct annual spending and employs more than 100 full-time professionals.
“I commend International Paper for choosing to relocate their captive insurance company to Tennessee and reaﬃrming their commitment to their global headquarters’ home state,” said Governor Lee. “Tennessee remains committed to ensuring a business friendly and commonsense regulatory environment.”
TDCI and International Paper leaders recently celebrated the relocation during a brief socially distanced event in Nashville. The event was highlighted by a video message from Tennessee Governor Bill Lee and the presentation of a ceremonial license by TDCI Captive Insurance Section Director Belinda Fortman to David Arick, International Paper Assistant Treasurer, Global Risk Management and board member of RIMS, the risk management society.
About the Tennessee Captive Insurance Association (TCIA):
TCIA is a community of captive industry experts, owners and service providers engaged in advocacy, communication and education, committed to a strong captive insurance industry in Tennessee since 2011. Visit www.tncaptives.org for TCIA information and news. Follow #TCIA on Facebook, Twitter and Linkedin.