Tennessee captive law now allows for insurance securitization entities


The Tennessee legislative and Governor Bill Haslem have implemented and signed into law a new bill designed to make the state a more attractive place for captive insurer formation. Amongst various changes to the way captives are governed in Tennessee of most interest to us is the introduction of a new class of captive insurer suitable for insurance securitization.

The new law allows for protected cell captives, changes the laws for workers compensation captives and allows a new class of captive which they call a Special Purpose Financial Captive (SPFC). These SPFC’s are designed to allow for securtization of insurance risk as a means of accessing the capital markets. That means that technically insurance-linked securities and catastrophe bond special purpose vehicles could now domicile in Tennessee.

It will be interesting to see if anyone explores this option of using Tennessee as a home for a cat bond.

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.