Medical systems have historically been the quickest to adopt captives to control their employee healthcare costs. From regional hospitals with a single plan, to large hospital systems with multiple plans, the systems have found that a captive-based structure used at the parent level enables a more efficient purchase with uniform protection across plans.
Instead of numerous affiliates within each human resources (HR) department buying their own stop-loss coverage, the parent can aggregate risk across their locations, giving them better efficiency, consistency and cost savings.
Due to the pandemic and the tightening insurance market, more organizations are looking to captive insurance companies for financial flexibility and protection. A new report from Guy Carpenter-affiliate Marsh explores how more than 1,200 captive insurance managers are maximizing the use of their captives. Topics covered in the report include:
- How to use captives for pandemic risks
- How captives can improve liquidity
- What captive owners should consider when creating a business case
- What's on the horizon for public-private pandemic partnerships
- What new lines and risks captives are writing
As the COVID-19 situation is changing on a daily basis, the total impact to the insurance and reinsurance markets remains unknown, and Guy Carpenter is advising clients in the space on how to best adapt to the circumstances.
Click here to read the report >>
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