Tennessee is the second oldest US captive domicile (after Colorado), having first passed a captive law in 1978. Without a strong focus on captives, numbers dwindled until 2011 when Tennessee re-launched its captive industry with the passing of the Revised Tennessee Captive Insurance Act. Numbers have increased and at the end of 2014, Tennessee had 72 active captives.

Minimum Capital and Surplus

Single parent captive $250,000
Group captive – industrial insured $500,000
Association captive $500,000
Risk Retention Group $1,000,000
Protected cell captive $500,000
Special purpose financial captive $250,000

Key Features of Legislation

Tennessee has modernized its captive legislation to include many of the key features of legislation from other domiciles. The legislation is very broad allowing the formation of single parent and group captives, risk retention groups, branch captives, special purpose financial captives and protected cell companies, including incorporated cells.

A unique feature of Tennessee’s legislation is allowing Tennessee companies which qualify as self-insureds for workers compensation to fund the risk through captives domiciled in the state.


Tennessee businesses are a primary focus of the Tennessee captive law. By having a state of the art captive law, there is no need for Tennessee owners to domicile captives outside the state. The ability to write Tennessee workers compensation directly in a captive will be attractive to large employers in the state and those organizations already qualified as a self insurer in Tennessee.

Tennessee also offers an alternative to South Carolina for organizations with headquarters in the Southeastern US states.

SRS Presence

SRS was approved as a captive manager in Tennessee in 2012 and our first Tennessee domiciled captive was licensed later that year. SRS  established a physical presence in the state in 2013.