Ohio State University has established its own captive insurance company to better manage risks and control costs.
The university’s board of trustees approved last week the creation of Great River Insurance, a Vermont-based captive that will insure certain risks for the university, its subsidiaries, and affiliated entities.
The move aims to enhance risk management, improve cost efficiency, and provide greater control over the university’s insurance programme.
Several other institutions, including the University of Michigan and Cornell University, have also turned to captive insurance companies to cover property damage, liability, and workers’ compensation.
Ohio State University will cover the startup costs, which include legal and consulting fees, initial capitalisation, licensing and regulatory expenses, as well as ongoing operational costs such as claims management, reinsurance premiums, administration, auditing, and actuarial services.
Great River Insurance will be governed by a board of directors consisting of university representatives and industry experts, with Mike Papadakis, Ohio State’s senior vice president for business and finance, overseeing the entity.
