Diversity in captive insurance means better outcomes
The profound ways in which diversity—whether in teams, thought, or insurance captives—drives better outcomes in the medical field, organisational performance, and beyond, were stressed at a panel discussion at the Cayman Captive Forum 2024, taking place in Cayman this week.
Panellists Rachel Pluviose, director at Health Enterprise Insurance Company, Britni Strong, director at SRS Cayman, and Melissa Menard, executive vice president and healthcare practice leader at CAC Specialty, shared insights on how embracing diversity and tackling unconscious biases can transform captives into powerful tools for innovation, risk management, and financial stability.
Menard stressed the impact of unconscious biases, particularly in healthcare and its insurance implications. She noted that cognitive biases such as confirmation bias—where individuals process information in ways that reinforce pre-existing beliefs—can result in diagnostic inaccuracies. Menard cited research from the NIH that found cognitive biases responsible for inaccuracies in 36% to 77% of cases. "I don’t need to tell anyone in this room the financial and operational implications of such inaccuracies on captives and healthcare programmes," Menard emphasised.
The discussion also touched on studies revealing disparities in medical care provided to black patients, who often report feeling unheard, and the alarming statistic that hospital mortality rates for female patients can be 15% to 20% higher than for males. These outcomes, Menard argued, underline the need for diverse teams in healthcare settings, as diversity helps to challenge assumptions and improve outcomes.
Britni Strong highlighted how captives themselves can be leveraged to enhance diversity—not just in team composition but also in the types of risks and coverages they encompass. "Many captives start with just a few lines of coverage," Strong explained, "but expanding into areas like workers’ compensation, medical stop-loss, or even owner-controlled insurance programmes can diversify your captive's portfolio and mitigate volatility at the parent organisation level."
Strong underscored how captives can serve as negotiating tools with markets, enabling organisations to push back on unfavourable pricing. Additionally, she stressed the importance of continually communicating the value of captives to parent organisations. "When the savings and stability generated by captives are effectively messaged, they foster greater support and appreciation," she said. "This ultimately creates a virtuous cycle of investment, innovation, and resilience."
Pluviose expanded the conversation to the broader meaning of diversity, emphasising the inclusion of all perspectives—be it socio-economic, neurodiverse, or geographic. "Diversity isn’t about exclusion," she remarked, "it’s about ensuring everyone has a seat at the table." Pluviose noted how geographic diversity in particular can yield valuable insights, as loss patterns and risks vary significantly across regions.
Pluviose also advocated for including professionals from disciplines not traditionally associated with captives, such as engineers or academics. These individuals, she argued, "challenge assumptions and pose questions that elevate the quality of decision-making and outcomes."
The panellists reinforced their points with statistics that demonstrate the tangible benefits of diversity. For example, diverse obstetrics teams achieve a 20% reduction in preventable adverse birth outcomes—a key area of focus in captive insurance discussions. Organisations with diverse teams are also 36% more likely to have above-average profits and 19% more innovative.
Conversely, workplaces lacking diversity face 22% higher rates of injuries and 20% higher healthcare costs. These disparities highlight the importance of diverse teams not only for capturing benefits but also for mitigating risks. As Strong succinctly put it, "Diversity isn’t just a buzzword; it’s a business imperative supported by facts."
The panellists also stressed that diversity without inclusion risks missing the full benefits of differing perspectives. Menard explained, "If people don’t feel comfortable sharing their thoughts, the potential to challenge assumptions and drive innovation is lost." Creating an inclusive environment ensures that diverse voices can contribute meaningfully to discussions, decisions, and strategies.
The panel concluded by emphasising that diversity in all its forms—team composition, thought processes, and captive coverage—can lead to transformative results. Whether improving healthcare outcomes, reducing risks, or driving financial performance, diversity is a strategic advantage that organisations must harness.
Pluviose concluded: "Every thought is valuable, every perspective strengthens the table, and every step toward diversity brings us closer to excellence."
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