Claims management practices have played largely into the growth of captives. Commercial insurers control claims process and payments. With a captive, a business can best control the claims process.
For high frequency risks, such as workers compensation, auto, and health, third party administrators (TPAs) are generally engaged even for captive programs to handle claims management.
Captive managers typically include claims management at no additional charge with enterprise risk captives that insure low frequency risks with reimbursement type coverages. Low frequency risks generally include regulatory risk, cyber risk, unfair competition risks, contractual risks and other types listed under “Less Common Casualty and Property Coverages” on our risk assessment page.