From: Captive International
Captive insurance remains poorly understood outside – and even within – the insurance industry, Milliman principal Mike Meehan has said. Jargon often prevents better understanding, he writes in an article on the company’s website.
“Captive insurance is a narrow niche within the insurance industry that is often not all that well understood, even by insurance professionals,” it reads.
“Sometimes it seems like the insurance industry, including the captive insurance segment, has a language all its own. As insurance professionals, we are used to using this language and jargon in our day-to-day jobs.”
Instead, Meehan suggests using examples to explain the concept: ”Examples and analogies can go a long way toward bridging the knowledge gap between insurance professionals and the general public for captives.”.
In his article, he uses health insurance to explain the concept.
“Even though most captive insurance is for other types of risk, health insurance provides a great window into understanding how captives work,” he writes.