The Tennessee Department of Commerce & Insurance (TDCI) reported another year of strong growth in the state’s captive insurance market, making 2025 the sixth straight year of expansion. This steady increase reinforces Tennessee’s role as a popular choice for businesses looking for alternative ways to manage risk.
In 2025, Tennessee added five new captive insurance companies and 50 new captive cells, bringing the total to 184 captives and 703 active cells. That’s an 8% rise in active cells and a 6% increase in total risk-bearing entities compared to 2024. These numbers show steady progress for the sector.
Captive insurance lets companies cover their own risks instead of relying only on traditional insurers. This approach appeals to firms that want more control over their insurance costs and coverage options. Tennessee’s supportive rules, especially since updating its captive insurance laws in 2011, have helped this growth.
Financially, the sector saw a big jump too. Premium volumes doubled from $2.1 billion in 2024 to $4.2 billion in 2025. This means not only are there more captives but existing ones are using their structures more deeply.
TDCI leaders say the growth comes from clear regulations, strong industry relationships, and good customer service. They work closely with current and potential captive owners to keep Tennessee business-friendly.
Experts point out that as insurance costs rise and risks change, more companies are turning to captive insurance as a smart way to manage uncertainty. Tennessee’s consistent growth over the last six years highlights this shift toward self-insurance.
With ongoing support from regulators and greater awareness in the market, TDCI is optimistic that Tennessee’s captive insurance industry will keep growing in the years ahead, further boosting its standing in the U.S. market.