When signing the revised Captive Statute, which made the state’s existing captive insurance laws more effective, balanced, and flexible, did you expect it to be such a success?
We went in with one expectation: if we build a best-in-class captive regulatory department, sensitive to the needs of owners, managers and service providers, we will increase employment and investment in the State of Tennessee.
How has Tennessee changed as a domicile since 2011?
We have witnessed a significant evolution from four years ago. Starting with a staff of one, we have developed into a 12-member team of trained and experienced professional staff dedicated to the growth and development of Tennessee captives.
After reaching 100 licensed captives, what has been the key to Tennessee’s success?
Several factors come to mind, including: timely responsiveness to the needs of captive owners and service providers; both governor Bill Haslam and commissioner Julie Mix McPeak providing consistent support for improving and modernising the Captive Statute; and the strong geographic attractiveness of Nashville.
Was 2015 a good year for Tennessee? How many captives did you license and what types of captives did you sign up?
The count is not yet final, however, preliminary estimates are that 2015 saw 56 new captives licensed, which was a 37 percent increase over 2014 results. This will bring the total number of captives at calendar year-end 2015 to 126. Cumulative risk bearing entities will close 2015 at 430, a 58 percent increase over cumulative calendar year 2014.
These figures are comprised of six protected cell captives, including 102 new cell companies, 46 pure captives and four risk retention groups.
Being located in a highly competitive market for captive insurance, what separates Tennessee from competitors?
There are many great domiciles to choose from both domestically and internationally. Tennessee has great geographic location, top-draw regulatory staff, and an engaged and committed governor and commissioner. That combination offers a superior choice for anyone starting or moving a captive insurance company.
Looking to 2016, what plans do you have to ensure the growth of Tennessee continues?
We plan to ensure that staffing needs are adequate to meet the needs of the market. We will also work with the Tennessee Captive Insurance Association to coordinate the legislative packages that keep the statute up to date, and continue to communicate to the ever-growing captive insurance community that Tennessee is a great place to do business. CIT