CAPTIVE INSIGHT
ONCE IN CAYMAN, A CLIENT’S PERCEPTION OF THE
OFFSHORE WORLD CAN CHANGE FROM ONE OF A
FUNCTIONARY MONOLINE CAPTIVE JURISDICTION,
TO ONE OF A VALUE-ADDED, PROFESSIONAL
BUSINESS HUB.
this regard to date. This needs to change.
Technology is increasing access to innovative
solutions and should be embraced with open
arms.
Loss mitigation solutions and controls offer a
good example of additional value to its clients.
Insurance Managers must look to the providers
of solutions to the commercial insurance sector
and see how these might benefit their clients.
To give just an example, Cayman has a large
number of captives whose core business is
US Workers Compensation or other business
lines with an exposure to US medical overbilling.
Therefore, we have aligned ourselves
with a service provider that specialises in
cost-efficient software for claims repricing
that utilises provider-specific benchmarks
with geographic data to create a true and
defensible “fair market price” for each medical
services and procedures.
The multiple benchmarks used include
previously accepted rates, geographicallyspecific
Medicare rates, state Worker’s
Compensation rates, cost-to-charge ratios,
Tricare reimbursement rates, hospitalreported
financial data, National Correct
Coding Initiatives Edits (NCCI), and more to
establish fair market pricing data.
This analysis regularly yields our customers
discounts of 45-55% of billed charges
compared to the 10-15% with PPO Network
discounts or UCR Re-Pricing methods. Given
how the data is sourced, the appeal rate is
around the 0.08% mark.
This pricing method is therefore perfect for
Workers Compensation audits. Combined with
line-by-line review of every bill, significant
results can be achieved. Coupled with a
contingent-based fee structure (based on a
percentage of recoveries) means the captive
has no financial risk or upfront fees for the
service.
Insurance is clearly not the only means of
cross-selling we have at our disposal. Once in
Cayman, a client’s perception of the offshore
world can change from one of a functionary
monoline captive jurisdiction, to one of a
value-added, professional business hub. A hub
that can service all of their corporate, wealth
and estate planning, all sourced directly
from through internationally experienced
professionals that fully understand their needs
and requirements.
More specifically, never before has the
relationship between the fund and insurance
industries been so close. Cayman offers its
clients the ability to take full advantage of
Cayman’s experience in the convergence
and Insurance Linked Securities (ILS) sector
for the benefit of both investment managers
and investors alike. In fact, Cayman’s unique
standing as a leading player in both industries,
puts the jurisdiction in an enviable position.
The continued collaboration of the private
sector across all industry sectors is imperative
if the jurisdiction is to continue its evolution
and growth. Furthermore, Cayman’s
Insurance Managers must give consideration
to offering invaluable products and solutions,
both traditional and non-traditional in order to
remain as a dynamic insurance marketplace.
In Cayman we recognise that our products are
merely our tools. Innovation and sophistication
are the driving forces of success. Thankfully,
Cayman’s unique set of Insurance Managers
and wider professionals remain committed
to working to constantly improve our offering
- ensuring that the Cayman Islands remains
a leading financial services provider for many
years to come.
67