The state of captive insurance in Tennessee

When we were in the process of setting up Hartwell Insurance we decided that one of the most vital parts of our brand portrayal was to be seen as definitively ‘American’.

This was because we recognised that, when it comes to any sort of financial business, the word ‘offshore’ comes with the wrong connotations.

It was therefore of the utmost importance that we not only set up our business in the USA, but that this was clear from the moment you visited our website.

After some deliberation, we ended up in Nashville, Tennessee – and we’re so proud of being based in this vibrant city that we’ve even used images of the city skyline as an integral part of our brand identity.

But of all the onshore captive domiciles available to choose from, why did we go for Tennessee?

The state of captive insurance in the state of Tennessee

Since the Tennessee Captive Insurance Act of 2011 was signed by Governor Bill Haslam, the industry has grown admirably and has brought with it great financial benefits to the state.

In fact, the captive insurance sector in Tennessee had an economic impact to the tune of $692 million in 2016.

And, with the 2011 Act having since been updated to further enhance the favourable environment for setting up captives, 2017 saw the state’s domestic captive insurance companies exceed $1 billion in premiums.

This notable growth has led to national recognition, with Tennessee having been a four-time consecutive finalist for Captive Review magazine’s ‘U.S. Captive Domicile of the Year’.

And, late last year, Director of the Tennessee Department of Commerce & Insurance Julie Mix McPeak stated that “Tennessee’s reputation as a business-friendly state has helped us become one of the first states now mentioned when corporations discuss where to establish a captive insurance company”.

With all this taken into account, it’s plain to see why we’ve based Hartwell Insurance in perhaps the strongest domicile in the world for captive operations.

Tennessee has caught the spirit of the Insurance industry – no longer are Businesses looking to slavishly pass on risk to Insurers without thinking of the consequences.

Indeed, most businesses can benefit from either having a Captive, or from using the services of a Captive such as Hartwell.

Captive insurance for business owners

States other than Tennessee are also expanding their Captive legislation; a new world of business-managed risk is upon us, and the Captive Insurers are spearheading that thrust.

This increase in competition has meant that previously untenable entry costs for American small and medium-sized businesses have lessened to an economically viable level, leading to captives becoming a much more realistic option for them.

As a result, there is now an increased awareness and appetite among business owners to utilize self-insurance and get the best cover for their specific set of operational circumstances.

With this in mind, the opportunity is there for small and medium-sized Brokers to present better, more tailored insurance solutions to their clients.

However – the pressures of having to learn about captives, implement them, and then sell the insurance solution to clients can be an administrative burden that leaves some Brokers reluctant to fully commit.

In a worst-case scenario, this can lead to them losing clients to other bigger Brokers who have that capability.

In fact, this scenario is the core reason that Hartwell Insurance was formed.

Captive insurance solutions for Brokers from Hartwell Insurance

Our main business goal is to provide Brokers with the means to set up and provide insurance captives to their clients and arrange the infrastructure needed to handle it properly. All of this is carried out with the view to making a positive difference to both Broker and client revenue streams.

Hartwell Insurance can help you whatever your main goal is, whether it’s:

Hartwell Insurance helps Brokers by taking away the stress of entering the world of insurance captives – meaning you can take full advantage with minimal effort.

Get in touch via the contact form on our homepage to find out more about how Hartwell Insurance can help you.