The healthcare industry faces difficult challenges that range from complex regulatory compliance & patient data security to malpractice risks & operational vulnerabilities.
Healthcare organizations are turning toward captive insurance to:
Secure coverage tailored to the unique risks of healthcare.
Navigate the financial uncertainties tied to liability claims.
Create financial efficiencies in patient care through innovative self-insurance strategies.
SRS Healthcare Practice Group crafts and implements captive solutions designed to meet the specific needs of healthcare entities. Our approach is holistic: We create captive insurance companies, design risk retention strategies, and facilitate access to the global reinsurance market. By doing so, we deliver solutions that not only address the immediate risk management needs of healthcare organizations, but also align with their broader operational and financial objectives.
Benefits and Outlook for 2025...& Beyond
The tangible benefits of SRS’ healthcare captive solutions include reductions in insurance costs and better management of both claims and operational safety measures. These improvements can be seen through key success metrics such as lower Total Cost of Risk (TCOR) as well as through strengthened risk management protocols. As we move forward, the healthcare landscape will continue to evolve, driven by advancements in medical technology, shifts in patient care models, and changes in healthcare regulations. In the face of such evolution, SRS’ captive insurance solutions can offer healthcare organizations a robust framework for managing risks, optimizing financial performance, and, ultimately, delivering superior patient care.
Healthcare Practice Group FAQs
How does SRS’ Healthcare Practice Group support the development of a healthcare captive?
SRS’ Healthcare Practice Group guides our clients through every step of developing a healthcare captive, from feasibility studies and domicile selection to regulatory compliance and operational management. Our team provides expertise in structuring captives to meet the specific needs of healthcare organizations, ensuring each captive is both efficient and effective in its risk management.
Can a healthcare captive cover malpractice risks?
Yes. One of the primary uses of captives in the healthcare sector is to provide malpractice liability coverage. Healthcare captives can be tailored to cover the unique malpractice risks faced by providers, offering more control over defense strategies and claims settlements than traditional malpractice insurance.
Can healthcare organizations use captives for employee benefits?
Absolutely. Healthcare organizations can use captives to fund and manage a wide range of employee benefits, including health insurance, disability income, and life insurance. This approach can lead to cost savings, greater flexibility in benefit design, and improved alignment of employee benefits with organizational goals.
How do Aletnative Risk Transfer (ART) solutions like parametric insurance work for healthcare organizations?
ART solutions like parametric insurance provide payouts based on the occurrence of predefined triggers rather than on traditional claims assessment processes. For healthcare organizations, these solutions could include coverage for business interruption due to public health emergencies, during which a payout would be triggered by specific event criteria––such as the declaration of an epidemic—ensuring quick financial support.
SRS Healthcare Practice Stats
238+ Healthcare Captives
Types of Captives
Group Captive
Single-Parent
Cell Cores
Risk Retention Group
Commercial (Re)Insurance
21 Active Domiciles
Alabama
Arizona
Arkansas
Barbados
Bermuda
British Columbia
Cayman Islands
Connecticut
Guernsey
Luxembourg
Missouri
Montana
Nevada
New Jersey
North Carolina
South Carolina
Tennessee
Texas
Utah
Vermont
Washington, DC
Key considerations in choosing a domicile for your healthcare captive should include regulatory environment, tax implications, operational costs, and the political and economic stability of the domicile. SRS assists healthcare organizations in selecting a domicile that aligns with strategic goals and risk management needs, taking into account both domestic and offshore options.
Lines of Coverage
Worker' Compensation
Medical Malpractice
Life Insurance
Medical Benefits
Accidental Death/Dismemberment
Auto Liability
About Strategic Risk Solutions
SRS is the world’s largest independent insurance company manager. With over 25 years’ experience, SRS provides management and consulting services to a wide range of insurance company structures, from single-parent captives to complex commercial insurers and reinsurers. SRS has operations North America, South America, Europe, Barbados, Bermuda, Canada, Cayman Islands, and South Africa.
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