Tennessee ranks as a significant player in the U.S. insurance industry, holding the 17th spot for insurance premium volume nationally. In 2024, the state recorded $75 billion in premiums written, with $26 billion contributed by companies headquartered within Tennessee. This reflects the strength of Tennessee's insurance infrastructure and the diverse range of businesses it supports.

The state's growing captive insurance market also plays a crucial role. In 2023, Tennessee's captive insurance sector reported $2.41 billion in premiums, marking a 13.6% increase from the previous year. Captive insurance growth has been bolstered by modernized regulations and proactive engagement with businesses, making Tennessee the 9th largest U.S. domicile and 13th globally for captives​

Businesses in Tennessee span industries like manufacturing, healthcare, agriculture, and technology. These industries bring unique insurance needs, ranging from product liability and cyber risks to regulatory compliance. The state’s strategic central location and robust regulatory framework make it attractive for insurers and businesses alike.

Key Factors in Premium Contributions:

1. Homegrown Insurers: Tennessee-based companies contributed $26 billion of the total premium volume. These companies play a pivotal role in supporting local and regional industries, providing tailored coverage solutions that align with the unique risks of various sectors​.

2. Captive Insurance Growth: Tennessee's captive insurance sector has been thriving. By modernizing regulations, the state has attracted more companies to establish captive insurance entities. This offers businesses cost-effective risk management solutions, particularly for industries with specialized or unique insurance needs​.

3. Sector-Specific Coverage:

   • Manufacturing: With over 6,000 establishments, manufacturers seek coverage for equipment breakdowns, product liability, and supply chain disruptions.

   • Healthcare: Insurers offer malpractice coverage and cyber liability insurance to mitigate risks tied to patient data and regulatory compliance.

   • Agriculture: Coverage for crop damage, livestock loss, and liability concerns is essential for Tennessee's agricultural businesses.

4. State-Level Incentives: Pro-business policies and the state’s strategic location have created a conducive environment for insurers. Regulations encourage innovation while maintaining strong consumer protections.

Broader Implications:

• Economic Impact: The premium volume positions Tennessee as a major contributor to the U.S. insurance landscape, driving economic growth and job creation.

• Consumer Protections: The Tennessee Department of Commerce and Insurance continues to mediate disputes and ensure fair practices, helping to maintain trust in the industry.

This combination of a diverse economy, progressive regulatory framework, and consumer focus underscores Tennessee's prominence in the insurance sector. Let me know if you'd like further specifics on any of these aspects! Call our office today at 423.541.1111 to learn more about Commercial insurance and Risk Management Solutions.