The Tennessee Department of Commerce & Insurance (TDCI) has reported another year of sustained expansion in its captive insurance sector, marking 2025 as the sixth consecutive year of growth for the state’s captive domicile. The continued upward trend reinforces Tennessee’s position as an increasingly competitive jurisdiction for companies seeking alternative risk financing solutions.
According to TDCI, the state licensed five new captive insurance companies and 50 new captive cells in 2025. This brought the total number of captives operating in Tennessee to 184, alongside 703 active cells. The figures represent an 8% increase in active cells and a 6% rise in overall risk-bearing entities compared to 2024, highlighting steady momentum in the sector.
Captive insurance, which allows companies to insure their own risks rather than relying solely on third-party insurers, has become a more attractive strategy for organizations aiming to gain greater control over costs, coverage structures, and long-term risk management. Tennessee’s regulatory environment has played a key role in supporting this growth, particularly following the modernization of its captive insurance statutes in 2011.
Financial performance within the state’s captive market also saw a significant increase. Premium volume doubled year-on-year, reaching $4.2 billion in 2025 compared to $2.1 billion in 2024. This sharp rise suggests not only an increase in the number of captives but also deeper utilization of captive structures by existing participants.
TDCI leadership attributed the sustained growth to a combination of regulatory clarity, industry engagement, and customer-focused service. The department emphasized its efforts to maintain strong relationships with both existing and prospective captive owners, positioning Tennessee as a responsive and business-friendly domicile.
Industry observers note that as companies continue to navigate a more complex risk environment - including rising insurance costs and evolving exposures - captive insurance is gaining traction as a strategic tool. Tennessee’s consistent growth over the past six years reflects this broader shift, as more organizations explore self-insurance models to enhance flexibility and resilience.
With continued regulatory support and growing market awareness, TDCI expressed confidence that Tennessee’s captive insurance sector will maintain its expansion trajectory in the coming years, further strengthening its reputation within the US captive insurance landscape.
