Healthcare Captives Will Write New Lines of Coverage in Response to Accountable Care

 
Captive Use Trends & Innovations  | Industry Applications | Michael Maglaras | Principal | Michael Maglaras & Company 

Michael Maglaras, principal at Michael Maglaras & Company, explains that with accountable care, healthcare systems face significant forces that will move healthcare captive owners to use their own surplus to fund increased self-insured retentions, cover higher limits, and write difficult coverages. Increased retention requirements occurring in hardening areas of the regular insurance marketplace, specifically for directors and officers liability and cyber and breach liability, will result in captives taking on deeper retentions to manage risk. Under Affordable Care, captives will also find a larger role to play in governing and managing care and with opportunities to use their surplus to enhance margins in the area of stop-loss capitation.