Risk managers face disputes involving reimbursement for the liabilities of captives in the re-insurance market.
Hospitals and other medical facilities and providers often turn to captive insurance structures to cover a range of risks, including medical and regulatory liability, data breaches and property damage. Risk managers should be aware that disputes involving reimbursement for the liabilities of captives can occur in the reinsurance market. Re insurance coverage disputes have distinct characteristics that may not be familiar to those with experience only in captive insurance and who have not experienced a disputed claim.
This article highlights three issues that captive insurance companies should be prepared to address in their reinsurance disputes with their captive’s reinsurance companies.