The Tennessee Department of Commerce and Insurance (TDCI), the state agency that oversees insurance, securities and various business regulations in Tennessee, announced that 2025 marked the sixth consecutive year of growth in active captive insurance units and risk-bearing entities.
TDCI Commissioner Carter Lawrence commented, “By combining responsible regulation, modern captive insurance regulations, and a professional, customer-focused team, Tennessee continues to stand out among captive domicile managers as the perfect place to live when establishing a captive insured domicile.”
“I am optimistic that the growth trends we have seen in a little over five years will continue into the future as Tennessee’s reputation as a premier choice for exclusive residence managers continues to grow.”
Within the department, the Captive Insurance Section is responsible for the oversight of the state’s captive insurance industry. This type of insurance allows a company to finance and manage its own risk by creating an internal insurance structure rather than purchasing insurance from an outside insurance company.
Since updating its captive insurance laws in 2011, Tennessee has steadily solidified its status as a captive insurance location. This progress continued in 2025, when five new captive insurance companies and 50 new units were licensed. The current total number of people in captivity across the state is 184, with 703 in cells.
Year-over-year data shows continued growth momentum, with active units increasing by 8% from 2024 to 2025 and overall risk-taking entities increasing by 6%. Premiums also climbed sharply, reaching $4.2 billion in 2025, compared with $2.9 billion the year before.
“I commend our outstanding team of analysts who have made customer service and connecting with potential clients a priority in 2025 and beyond,” said Mark Wiedeman, director of TDCI’s Captive Division. “I firmly believe that continued year-over-year growth, excellent relationships and connections to clients will continue to inspire other companies to establish captives in Tennessee to meet their risk financing needs.”
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