Printer Friendly

Creative Group Captives Can Find Added Benefits.

Group captives can bring unexpected benefits to member companies, even in a soft market, said experts in the industry.

Robert S. Wilkinson, who has served as treasurer for the Alliance of Community Health Plans Insurance Co., said his group captive provides more than stop-loss insurance to its member plans.

The members in the group have access to a database with information on expensive health-care cases and various treatments. They also can use the captive's research on the best transplant centers in the country-a study a single health maintenance organization could not have done alone, Wilkinson said.

Wilkinson is executive vice president of plan operations for Univera Healthcare, which was formed after the merger of Health Care Plan and Health Services Medical Corporation of CNY Inc.

Group captives are formed by several companies that pool their resources to launch their own insurance company Often, the companies are motivated by high prices or volatility in pricing, and they seek to control their own insurance destiny, said George Chaffee, president of Skandia International Risk Management Ltd.

Once in a captive, member companies find other added benefits.

In a good year, members will receive dividends if their premiums are higher than their claims. In addition, they earn interest that they wouldn't be earning if they paid premiums to a traditional insurer.

Chaffee said captives are a "financial tool. A captive can be turned into a profit center."
COPYRIGHT 2000 A.M. Best Company, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2000, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:captive insurance
Comment:Creative Group Captives Can Find Added Benefits.(captive insurance)
Publication:Best's Review
Article Type:Brief Article
Geographic Code:1USA
Date:Jan 1, 2000
Words:233
Previous Article:Trends Begin to Emerge As Captive Industry Grows.
Next Article:Securitizations May Get Boost From Financial-Services Reform.
Topics:


Related Articles
Experts Say a Soft Market is Best For Starting Captives.
U.S. Tax Incentive Drives Captives Toward Benefits.
Trends Begin to Emerge As Captive Industry Grows.
Tax Breaks Fade as Incentive To Form European Captives.
Risk Retention, Capitalization Pose Hazards for Captives.
British Virgin Islands Grants 56 New Captive Licenses.
Pickup Trucks and Captives.
Captivating Growth.
New alternatives. (Property/Casualty).
Ask an FEI Researcher about. (Resources).

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters |