New and Innovative Uses for Captives


Captive Uses, Trends & Innovations | Brady Young | President & CEO | Strategic Risk Solutions


Some of the emerging uses for captive insurance companies, as explained by Brady Young of Strategic Risk Solutions, are enterprise risk coverages for commercially uninsurable exposures, customer risks such as warranties and service contracts, healthcare capitation risks to cover services exceeding an obligated or fixed service cost amount, and medical stop loss coverage. Although not new types of risk, some other areas of growth include using captives to access the federal terrorism risk pool and to plug holes in exclusions on property policies. Lastly, health systems and hospitals are using their captives to set up onshore risk retention groups to address the expanding needs of hospital-employed physician groups.