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.

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.

Read previous post:
Microinsurance Catastrophe Risk Organisation (MiCRO) triggered in Haiti

The Microinsurance Catastrophe Risk Organisation (MiCRO) facility, which was launched in April by a high-profile partnership of companies, is reported...