I just joined a practice and the malpractice carrier (red clay risk retention group inc) is a bit unique compared to most commercial carriers. http://www.totalcaptivesolutions.com/
This is my first exposure to captive insurance. https://en.wikipedia.org/wiki/Captive_insurance
Here's a WCI post that touches on the topic:
https://www.whitecoatinvestor.com/captive-insurance-companies-for-physicians/
Apparently the company my practice uses offers malpractice insurance (1mil/3mil) and offers the “opportunity” (actually a requirement) to purchase shares in the company as a percentage of your annual premiums (75% of annual premiums in my case). At this stage I’m unsure of what if any underlying investments exist but I am requesting more information from the company. I’ve been told that returns have been 12-15% over the last 10 years with low market correlation. I’ll believe it when I see it.
Evidently the company insures doctors with a low risk of being sued and is very selective (cherry picking) with the doctors they insure. My group has 3 doctors and this appears to be a captive that covers a number of smaller practices through the same structure.
Any others with experience with policies similar to this or captive insurance in general?
This is my first exposure to captive insurance. https://en.wikipedia.org/wiki/Captive_insurance
Here's a WCI post that touches on the topic:
https://www.whitecoatinvestor.com/captive-insurance-companies-for-physicians/
Apparently the company my practice uses offers malpractice insurance (1mil/3mil) and offers the “opportunity” (actually a requirement) to purchase shares in the company as a percentage of your annual premiums (75% of annual premiums in my case). At this stage I’m unsure of what if any underlying investments exist but I am requesting more information from the company. I’ve been told that returns have been 12-15% over the last 10 years with low market correlation. I’ll believe it when I see it.
Evidently the company insures doctors with a low risk of being sued and is very selective (cherry picking) with the doctors they insure. My group has 3 doctors and this appears to be a captive that covers a number of smaller practices through the same structure.
Any others with experience with policies similar to this or captive insurance in general?
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