University of California to launch fifth captive
The University of California (UC) will launch its fifth captive, Sequoia IC, within the next 60-90 days, subject to regulatory approval.
“The University is committed to utilising its captive insurance platform to more efficiently finance the myriad risks for the University, as well as to provide new and efficient insurance offerings to our faculty, staff, students and employees,” a spokesperson for the University said. “Sequoia, IC will provide UC with the appropriate insurance company structure.”
UC generates innumerable risks from its ten research Universities, five academic medical centers and three affiliated national laboratories, UC said, and uses a captive insurance company platform to manage these risks.
Fiat Lux Risk and Insurance Company was formed in 2012, financing UC’s retained risk layers, purchasing reinsurance directly, filling gaps in insurance coverages and participating with reinsurance underwriters.
But as a not-for-profit insurance company Fiat Lux has a limited ability to write third party insurance contracts. It therefore created Eureka Insurance Company, Eureka One Insurance Company and UC Health RRG, a reciprocal risk retention group, to ensure adequate coverage for students, faculty, physicians, staff, alumni and UC affiliates.