Med Mal Coverage Sought In Captives

"They're coming out of the woodwork," Clayton Ingram, manager of business development, alternative risk transfer services, for the South Carolina Insurance Department, told the National Underwriter here at the Vermont Captive Insurance Association annual conference.

Mr. Ingram said he has had inquiries from hospital groups, medical doctor groups, medical practices, medical staffing groups and agent groups with clients in need of the coverage.

"Everybody lost their insurance overnight. They're looking at six months down the road when they're not going to be able to practice," he said.

South Carolina so far this year has licensed 18 captives and has another six "ready to go," he said. Those six consist of medical malpractice groups, nursing home groups, real estate groups and sponsored captive groups.

There are also several risk retention groups. "They're the hot ticket," Mr. Ingram added. "Nobody can find fronting."

Tim Morris, captive insurance examiner for the Office of the Auditor, state of Montana, said the state, which has had one redomicile since mid-July, has four potential captives in the approval process.

One of those, he said, is a hospital association, though there have been other inquiries.

"Smaller hospitals have a harder time getting coverage because they don't have the resources," he said.

Mr. Morris explained that hospitals serving rural populations of 1,000 to 8,000 may only consist of one or two beds.

Mr. Ingram expressed concern that professional liability coverage issues that now affect medical groups could eventually reach other groups such as attorneys.