Creative Group Captives Can Find Added Benefits.
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."
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|Title Annotation:||captive insurance|
|Comment:||Creative Group Captives Can Find Added Benefits.(captive insurance)|
|Article Type:||Brief Article|
|Date:||Jan 1, 2000|
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