Healthcare policy changes in recent years have created a greater demand for healthcare captives to offset the upsurge in potential risks, and Bermuda has seen substantial growth in the sector over the past five years, according to Bermuda industry experts.
Policy changes, particularly those in the US under the Affordable Care Act (ACA), also known as ObamaCare, have driven the combining of hospitals and other healthcare entities and expanded Medicaid coverage to millions more Americans, which has resulted in an increase of healthcare captives in Bermuda.
To capitalise on the expansion, Bermuda industry experts will be part of a Bermuda Business Development Agency (BDA) delegation to the American Society for Healthcare Risk Management (ASHRM) conference being held in Indianapolis between 18 and 21 October.
The BDA is also hosting a webinar on 30 September, which will feature an expert panel discussing these trends and the ways in which the Bermuda insurance market has responded with innovative risk-transfer products.
According to the BDA, Bermuda can count among its advantages a solid track record of paying claims, and local capacity in the jurisdiction to write up to $400 million for any single risk.
The island also provides a diverse menu of healthcare risk solutions, catering to standalone hospitals, long-term care, fully integrated healthcare delivery systems, and countrywide, for-profit hospital chains, according to a webinar panellist, Oceana Yates, vice president of captives for Bermuda-based regulatory and quality solutions Quest Management Services.
Yates added: "With more captives than any other domicile in the world and now on track to achieve Solvency II equivalence, Bermuda continues to be at the forefront of global captive developments.”
"The expansion of the reach of hospitals and other healthcare facilities is driving this captive growth in Bermuda."
