The healthcare industry faces difficult challenges that range from complex regulatory compliance and patient data security to malpractice risks and operational vulnerabilities.
Healthcare organizations are turning towards captive insurance to:
Secure coverage tailored to the unique risks of healthcare
Navigate the financial uncertainties tied to liability claims
Create financial efficiencies in patient care through innovative self-insurance strategies.
SRS’s Healthcare Practice Group crafts and implements captive solutions designed to meet the specific needs of healthcare entities. Our approach is holistic: creating captive insurance companies, designing risk retention strategies, and facilitating access to the global reinsurance market. By doing so, SRS delivers solutions that not only address the immediate risk management needs of healthcare organizations but also align with their broader operational and financial objectives.
Benefits and Outlook for 2024
The tangible benefits of our healthcare captive solutions include reductions in insurance costs, and better management of claims and operational safety measures. These improvements can be seen through key success metrics such as a lower Total Cost of Risk (TCOR) and strengthened risk management protocols. As we move into 2024, the healthcare landscape continues to evolve, driven by advancements in medical technology, shifts in patient care models, and changes in healthcare regulations. SRS’s captive insurance solutions offer healthcare organizations a robust framework for managing risks, optimizing financial performance, and ultimately, delivering superior patient care.
Healthcare Practice Group FAQs
How does SRS’ Healthcare Practice Group support the development of a healthcare captive?
SRS’s Healthcare Practice Group assists in every step of developing a healthcare captive, from feasibility studies and domicile selection to regulatory compliance and operational management. Our team provides expertise in structuring captives to meet the specific needs of healthcare organizations, ensuring that the captive is both efficient and effective in risk management.
Can a healthcare captive cover malpractice risks?
Yes, one of the primary uses of captives in the healthcare sector is to provide malpractice liability coverage. Healthcare captives can be tailored to cover the unique malpractice risks faced by providers, offering more control over defense strategies and claims settlements than traditional malpractice insurance.
Can healthcare organizations use captives for employee benefits?
Absolutely. Healthcare organizations can use captives to fund and manage a wide range of employee benefits, including health insurance, disability income, and life insurance. This approach can lead to cost savings, greater flexibility in benefit design, and improved alignment of employee benefits with organizational goals.
How do ART solutions like parametric insurance work for healthcare organizations?
ART solutions such as parametric insurance provide payouts based on the occurrence of predefined triggers, rather than traditional claims assessment processes. For healthcare organizations, this could include coverage for business interruption due to public health emergencies, where a payout is triggered by specific event criteria, such as the declaration of an epidemic, ensuring quick financial support.
SRS Healthcare Practice Stats
238+
Healthcare Captives
21 Active Domiciles
Alabama
Arizona
Arkansas
Barbados
Bermuda
British Columbia
Cayman
Connecticut
Guernsey
Luxembourg
Missouri
Montana
Nevada
New Jersey
North Carolina
South Carolina
Tennessee
Texas
Utah
Vermont
Washington, D.C.
Types of Captives
Group Captive
Single Parent
Cell Cores
Risk Retention Group
Commercial (Re) Insurance
Key considerations in choosing a domicile for your healthcare captive should include regulatory environment, tax implications, operational costs, and the political and economic stability of the domicile. SRS guides healthcare organizations in selecting a domicile that aligns with their strategic goals and risk management needs, taking into account both domestic and offshore options.
Lines of Coverage
Workers Compensation
Medical Malpractice
Life Insurance
Medical Benefits
Accidental Death/Dismemberment
Auto Liability
About Strategic Risk Solutions
SRS is the world’s largest independent insurance company manager. With over 25 years of experience, SRS provides management and consulting services to a wide range of insurance company entities, from single parent captives to complex commercial insurers and reinsurers. SRS has operations in the United States, Canada, Europe, Barbados, Bermuda, Cayman Islands, Latin America, and South Africa.
