Risk & Insurance: John E. Hall, Jr. Discusses the Prevalence of Health Care Captives in the Cayman Islands
In a Risk & Insurance article about the prevalence of health care captives in the Cayman Islands, Founding Partner John E. Hall, Jr. said the captives popularity can be attributed to a number of industry trends including increasing premiums, claims frequency, social inflation and nuclear jury verdicts.
“The increasing severity and volume of claims and settlements in the traditional U.S. health care market, and the consolidation of coverage available, has caused health care companies to look for alternatives,” he said. “Captives are the obvious risk transfer vehicle for this and, given its long-standing reputation for health care captives, this makes Cayman the domicile of choice.”
By switching to a captive model, health care organizations have been able to secure more favorable and flexible rates, terms and capacity, or they have utilized their existing captives to take on more risk and lines of coverage such as employee medical stop loss.
You can read the full article on the Risk & Insurance website.