Tennessee adds record number of captives
Tennessee added 104 captive entities in 2016, a record number as the state builds its captive industry following a 2011 legislative change, the Tennessee Department of Commerce & Insurance said on Friday.
The new captives, called risk-bearing entities by the department, composed of 30 pure captives, five protected cell companies, one association captive, one risk retention group and 67 new protected cells, the department said in a press release.
Nine of the newly added captives are redomestications to the state from other domestic and international domiciles, according to the department.
The 2016 additions bring the state’s total to 159 captives and 379 protected cells formed for a total of 538 risk-bearing entities – growth that was attributed to a 2011 revision designed to make the state’s captive insurance laws more effective, balanced and flexible, according to the department.
“We are proud of the progress made last year to expand Tennessee’s captive insurance market,” Commissioner Julie Mix McPeak said in the statement. The department “remains committed to its role of maintaining proper regulation of captive insurance in Tennessee.”