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Insurance for Medical Professionals

When Captive Insurance Falls Short For Medical Professionals

Insurance for Medical Professionals

In the 1980s, many businesses were challenged with obtaining some types of commercial insurance coverage. Several solutions entered the scene, including captive insurance. According to the Insurance Information Institute, “A captive is a special type of insurance company set up by a parent company, trade association or group of companies to insure the risks of its owner or owners.”

Healthcare organizations found captive insurance a very attractive option to cover their medical malpractice risks. However, this cost-control strategy is starting to unravel as many reinsurers who back these captives are starting to rebel. Reinsurers are seeing an increase in the frequency of severity for typical medical practice claims, and tired of absorbing severe losses caused by negligent or rogue physician behavior.

While in the past, reinsurers may have been offsetting losses by business reserves or profits in other lines to support underwriting at a loss, today, they are rethinking that strategy. In fact, many are starting to make changes in either pricing or limits at renewal. In fact, what keeps them up at night is the litigious nature of batch claims, causing them to look for rate and higher retentions.

Where does this leave the individual physician? Perhaps out in the cold should the reinsurer reconsider their relationship with the healthcare organization. Think that could never happen? Think again, because reinsurers are starting to push back at renewal time. But there is something physicians can do to protect themselves — professional liability insurance for medical professionals from XINSURANCE.


XINSURANCE is powered by Evolution Insurance Brokers, an excess and surplus lines insurance brokerage. XINSURANCE provides customized specialty insurance solutions for ever-changing risks and liability issues, including malpractice, Professional Liability, D&O, Commercial General Liability, and more.

XINSURANCE offers flexible underwriting, risk management expertise, and outstanding claims results for difficult risks, with consideration for good risk management practices. We’ll even defend you in the event you are named in an incident, claim or lawsuit.

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Now’s the time to put XINSURANCE behind you. Learn more today at our insurance for medical professionals page.

Rick LindseyAuthored by Rick J. Lindsey, President, Chairman, and CEO of XINSURANCE

Rick J. Lindsey hails from Salt Lake City, Utah. He began working in the mailroom of his father’s Salt Lake City insurance firm, getting his introduction to the business that became his lifelong career. Rick J. Lindsey quickly rose through the ranks while working in nearly every imaginable insurance industry job. As an entrepreneur, specialty lines underwriter, claims specialist, risk manager, and a licensed surplus lines broker, Rick J. Lindsey is highly skilled in all levels of leadership and execution. As he progressed on his career path, Rick J. Lindsey discovered an urgent need for insurers willing to write policies for high-risk individuals and businesses. He was frequently frustrated that he could not provide the liability protection these entities desperately needed to safeguard their assets. He also formed the belief that insurance companies acted too quickly to settle frivolous claims. Rick J. Lindsey decided to try a different approach. He started an insurance company and became the newly formed entity’s CEO. This opportunity has enabled Rick J. Lindsey to fill a void in the market and provide a valuable service to businesses, individuals, and insurance agents who write high-risk business. XINSURANCE also specializes in helping individuals and businesses who live a lifestyle or participate in activities that make them difficult for traditional carriers to insure. If you’ve been denied, non-renewed, or canceled coverage, don’t give up quite yet. Chances are XINSURANCE can help.