Article Examines the Health Insurance Analogy in Explaining Captives

A recently published article suggests the value of using a health insurance analogy to explain the workings of captive insurance to those unfamiliar with the concept.

In their article, "Captive Insurance: The Health Insurance Analogy," Joel S. Chansky and Michael C. Meehan of Milliman, Inc., acknowledge that captive insurance is a narrow niche within the broader insurance industry that often isn't well understood, even by some insurance professionals.

Further, like many industries, captive insurance has a language of its own. That jargon has become commonplace in the daily interactions of captive insurance professionals, the article notes.

Examples and analogies are often useful tools in explaining concepts, the authors suggest, and could play a useful role in explaining captive insurance to other insurance industry professionals, as well as to the general public. With that in mind, Mr. Chansky and Mr. Meehan suggest health insurance as a useful analogy for explaining the workings of captive insurance and proceed to offer a detailed case of how that example applies.

The article, "Captive Insurance: The Health Insurance Analogy," can be found on the Milliman website.