Innovative Uses of Captives for Health Care Providers
White Paper Summary
One of the fastest growing uses of captive insurance companies is small captives providing coverage for low frequency, high severity insurance exposures to health care providers. Several factors are contributing to this growth. The significant changes in how health care is being delivered are creating new and increasing insurance exposures for providers. Admitted insurance companies are developing insurance programs for these coverages, however, given the lack of data, rates are relatively high and coverage is not always available. For many years, health care professionals have participated in captive insurance companies as an effective means of financing their medical professional liability insurance and taking better control of these insurance costs. As a result, they are quite familiar with how captives operate and the risks and opportunities they present. A growing number of health care professionals are expanding how they use captives to address the ever changing insurance exposures they face.
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