Riverside Health uses Bermuda captive to fund risk mitigation initiatives
Virginia-based Riverside Health System has successfully been able to deploy its Bermuda captive as a key tool for risk mitigation, education and claims management, Captive Review reports from the Bermuda Captive Conference earlier this week.
Giving a presentation at the Bermuda Captive Conference, Lisa Shannon, associate vice president of risk management and insurance services for Riverside Health, explained the captive, RHS MedInsur, Ltd., was formed in 2003 to gain greater control over its risk programmes and reduce reliance on the commercial market.
“The market was extremely hard. In 2005 is when tort reforms came into effect. So, carriers were requesting higher attachment points, resulting in higher retentions. And there was limited or no control over the claim and litigation process,” said Shannon.
The organisation was also interested in direct access to reinsurance markets, and the potential to realise underwriting profits.
Shannon highlighted Bermuda’s “political stability, regulatory environment and the experience with healthcare captives” as to why the captive was first domiciled on the island, and why she chooses to keep it there.
To read more at Captive Review click here.
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