CAPTIVE MANAGEMENT SERVICES

40+ years of collective experience and undeniable client results have reinforced our position that the single most effective way to reduce the costs of managing professional liability insurance is to also manage the quality of healthcare outcomes and ultimately enhance patient safety. This is a two-fold process:

  1. Develop a system and process, supported with expertise and software efficiencies, that identifies patient safety issues in REAL-TIME, driving immediate action so that further exposure can be avoided; and…

  2. Consider the creation of a Captive Insurance Company that will modify excessive liability insurance payments and reward your efforts toward enhanced care and decreased exposure.

CaptiveTriadA Captive Insurance Company can be extremely cost-effective, even as it shifts more control of the risk to the healthcare organization itself, because in doing so, it places a greater emphasis on patient safety, and can therefore raise the awareness of potential exposures system-wide. However, for a Captive Insurance Company to truly be successful, it requires a confluence of performing three funtions well: Underwriting, Risk-Quality-Safety (RQS) Management, and Claims Management. We call this the Captive Risk Management Triad™.

Captive Design and Development

Clarity assists senior management and their boards of directors to articulate their strategic goals in the formation of an alternative risk financing vehicle. From these goals various models for the creation of an insurance operation are explored for their fit with a number of criteria including regulatory, financial and operational considerations.

Once the selection of insurance operation model is made, Clarity completes the formation and licensing process appropriate to the domicile for the company. Key aspects of this phase include: business plan development, actuarial analysis and rating plan design, application and policy forms development, claims and risk management systems design, and financial documents. Coordination with the healthcare organization's internal systems is central to the formation process.

Captive Operations

Clarity provides the services to operate and manage the Captive insurance company. A full-service provider, Clarity provides underwriting Policy Administration, risk and claim management services alongside regulatory compliance and financial reporting and management for the company. Core to the operation's philosophy is Clarity's Total Risk, Quality, Safety, Service Management Model (The TRQS2 Model™) which integrates the healthcare organization's efforts to enhance healthcare excellence with the insurance product to help support good financial performance of the insurance entity making the connection between quality and liability explicit.