The Board of Directors oversees Tennessee’s Captive Insurance Program. The duties of the Board are found in T.C.A. § 9-8-103. The Board of Directors of the State of Tennessee Captive Insurance Company provides general oversight of Tennessee’s Captive Insurance Company.

The Captive Insurance Company was formed in June 2022. The main purpose for creating the Captive Insurance Company was to avoid using traditional commercial insurance companies, which have been extremely volatile in pricing over the past years. Through the Captive Insurance Company, the State expects to reduce its overall costs, have the ability to insure difficult risks, and have direct access to reinsurance markets, which will increase the likelihood of savings in premiums and other costs associated with the purchase of insurance from the traditional insurance market.