SelfCap LTC Case Study
In 2002, a long term care management company operating more than 20 long term care facilities in the Midwest was facing a trend of increasing losses and rapidly increasing insurance premiums from the their traditional insurance carriers. The management company felt that they were not getting adequate service or attention from their liability carrier, and they decided to take control of their liability insurance destiny using the long term care liability experts at Chelsea Rhone Captive Services.
Chelsea Rhone Captive Services used standard underwriting methodologies to calculate premiums paid by the facilities participating in the captive program. Chelsea Rhone Captive Services then created the captive entity, provided billing services, and issued policies to the participating facilities.
The management company took responsibility for reversing their prior increase in loss experience by engaging Chelsea Rhone Captive services to provide detailed incident tracking and analysis, and arranged for our risk management services personnel to perform regular on-site risk assessment visits. Top management at the company made risk management and hands on attention to liability issues a top priority.
As a result of the management company’s commitment to the risk management and claim management process, this organization was able to reverse the their rising claim trends and achieved an ultimate loss experience significantly lower than the premiums paid into their captive.
Figure 1. SelfCap LTC Case
Study Pro Forma Financial Performance
Figure 1 illustrates the captive’s financial performance, starting from a zero asset base in 2002 and achieving a current asset base of over $14 million. The management company was able to keep premiums flat, despite an environment of increasing premiums from traditional carriers. In addition, the profits they realized from their positive experience has accrued to the benefit of the management company as equity in this insuring entity.
HealthCap Affinity
Our Affinity Program helps associations of senior care facilities save money while retaining the financial security of A-rated individual policies. See why other associations have chosen HealthCap as their endorsed program partner.
SelfCap LTC Case Study
A sophisticated senior care organization with favorable claim experience wanted to capture underwriting income that their conventional insurance provider had been earning off their account. Learn how they reclaimed their financial independence with SelfCap LTC.