Medical Insurer Forms Bermuda Rent-A-Captive
Professionals Group, through its insurance subsidiary ProNational Insurance Company, says it has created a facility to offer alternative risk products to its clients. The newly formed Bermudan insurance company, Professionals National Insurance Company Ltd., will be used as a rent-a- captive facility for core business in the health care professional liability arena.
"With the creation of Professionals National Insurance Company Ltd. we are now better able to meet the needs of our health care clients and agents during these dynamic times. Our goal is to continue our development as the premier provider of professional liability products to the health care industry. This move into the alternative risk sector is a strategic step towards accomplishing our objectives. The alternative marketplace lacks expertise and risk sharing opportunities in the professional liability sector, and we fill that niche with Professionals National," stated Jeff Bowlby, senior vice president, marketing and sales.
The rent-a-captive concept gives clients the benefits of a captive insurance company without the up-front costs and capital investment required in forming their own captive. By participating in a rent-a-captive, organizations can share in the underwriting results and the investment income generated by their insurance premiums. Since ProNational is underwrites professional liability coverages, it will offer clients risk sharing on alternative risk business.
ProNational says it will maintain focus on its core markets of physicians, dentists and lawyers while targeting Michigan, Ohio, Florida, Illinois, Indiana, Pennsylvania, New Jersey, Kentucky and Iowa for alternative risk transfer opportunities.
Professionals National Insurance Company Ltd. was capitalized and created under special legislation by the Bermudan Government. The newly formed company provides segregated cell protection through a special legislative process.
"It is in our clients best interest to be protected from the results of others when participating in a rent-a-captive. The special legislation, while more conservative, offers the optimal program for our clients," according to Victor Adamo, CEO of Professionals Group.
Professionals National Insurance Company Ltd. is fully operational and can be accessed through contact with ProNational Insurance Company, Okemos, Michigan.