Value-based healthcare can deliver sizable new sources of revenue, but there is also a real risk of meaningful losses. Fortunately, new insurance programmes and captive insurance models are emerging that enable providers to pursue these new revenue opportunities without taking on more risk exposure than they can tolerate, says Dave Terry of Archway Health.
Udo Kappes is chairman of the European Captive Insurance and Reinsurance Owners’ Association. Captive International talked to him about the outlook for the market, regulation and why people should not be so hung up on numbers.
Towing companies in the US have traditionally found the process of procuring insurance a frustrating experience. The coverage on offer rarely suited their specific needs, and it was expensive. The solution was to create TowCap Premier, the towing industry’s first group captive. Solomon Teague reports.
Governments have traditionally been deeply suspicious of marijuana. But with US political leaders finding $1.8 billion and (no pun intended) growing in tax revenues, attitudes are changing. Global governments looking to capitalise on this emerging tax base will bring forward legislation to ensure they capture a share of the cannabis goldmine, says Jeana Nordstrom of Capital Security.
In a transitioning commercial insurance market, now is the time to assess whether your captive is being optimally utilised or whether changes should be made. If you don’t have a captive, now might be the right time to establish one, says Rob Geraghty of Marsh Captive Solutions.
Cell captives come with many different names, depending on the domicile. But whether they be segregated cell companies, protected cell companies, portfolio insurance companies or rent-a-captives, a growing number of prospective captive owners are choosing these vehicles for the flexibility they offer, say Lawrence Cook and Chris Mandel of Sedgwick.
Nearly 100 years ago, the first single parent captive insurance companies were formed onshore in the UK. There has been tremendous evolution in the captives industry, but there has not been as much progress with the captive investment portfolio, says Callan’s Sara Hakim.
In an industry viewed as conservative or slow to change, some insurers might perceive insurtech as a fad, or worse, too risky. For the captive insurance industry, however, the upsides of an insurtech partnership are simply too good to dismiss, as Julie Bordo of PCH Mutual Insurance relates.
It is very rare for the yield of the S&P 500 to eclipse the yield paid on US Treasury 10-year notes. When it does, it means either the bond market is overvalued or the equity market is undervalued—or both, says Jack Meskunas at Oppenheimer & Co.
As a generation of experienced captive insurance professionals retires, the industry is at risk of losing a reservoir of experience, brainpower and knowledge. The community as a whole needs to do more to ensure it hires new, young talent to absorb this knowledge—before the baby-boomers are all gone, says Jeff Kehler at Somers Risk Consulting.