Why Should a Captive Insurer Have Written Claims Handling Procedures
The best practice for a captive insurer is to have written claims handling procedures, says Lynn Sheils, general counsel of EWI Reinsurance. A captive is expected to act like a traditional insurance company. The captive is also expected to have consistency in how it handles claims; it needs to be prepared for claims disputes; and it needs to demonstrate that it has strong claims handling procedures and that these procedures were followed. Written procedures cause the captive to contemplate all of its needed claims handling resources. Procedures also motivate the captive to think about what type of claims data it will capture.