Single Parent Captive Insurance

What Kind of Organizations are Single Parent Captives Suited to?

Single parent captives are best-suited to organizations that pay a substantial amount for insurance each year. They must also be willing to take on the responsibility of managing their own insurance. Single parent captives are suitable for senior living facilities like assisted living facilities, independent living facilities and hospices. Insurance coverage is a major expense for these organizations and they can earn interest by investing this money through a captive.

Healthcare facilities, particularly hospitals face diverse and significant risks, so can benefit from the flexibility and potential cost savings a single parent captive can provide.

It’s recommended that only organizations familiar with the captive environment start a Pure Captive. Those new to this type of self-insurance may prefer to start with a Protected Cell or Segregated Cell Captive. That way, they can ease into the captive environment through a managed structure, before taking on that responsibility themselves.

What are the Advantages of Single Parent Captive Insurance?

• Cost Savings:  By self-insuring, organizations can potentially achieve substantial savings on insurance costs. As the captive is owned by the organization, they can also retain any underwriting profits or investment income.
• Enhanced Risk Management: With a pure captive, organizations take on an active role in managing their own risks. this leads to heightened risk awareness and improved risk management practices within the organization. The conversation around risk management becomes more focused on the savings potential rather than just the costs.
• Improved Safety Outcomes: A greater focus on risk management usually leads to improved safety outcomes. For healthcare and senior living facilities, this means safer environments for patients and residents, which results in fewer claims.
• Greater Control and Flexibility: Single Parent Captive Insurance provides organizations with complete control and flexibility over their insurance programs. Coverage can be tailored to meet unique needs, and changes can be implemented quickly. This allows the organization to adapt to evolving risk landscapes.
• Continuity in Programs & Premiums: Insurance companies will raise premium costs and even decline coverage when they wish to reduce their exposure in a particular venue or market. By self insuring, organizations can give themselves a buffer against this constantly changing landscape.