Captive Insurance Financing Programs
The University of California system generates innumerable risks from its ten research Universities, five academic medical centers and three affiliated national laboratories. The University, through the Office of Risk Services, has created a captive insurance company platform to most efficiently finance these risks, and to provide the infrastructure necessary to support insurance programs beneficial to the University’s students, faculty, staff and alumni.
The cornerstone of this captive insurance platform is Fiat Lux Risk and Insurance Company. Formed in 2012, Fiat Lux finances the University’s retained risk layers; purchases reinsurance directly, fills gaps in insurance coverages, and participates with reinsurance underwriters.
Fiat Lux was awarded the prestigious “Outstanding Captive Insurance Company of the Year” award in 2017 by the captive insurance industries international association, The Captive Insurance Companies Association (CICA).
As Fiat Lux is a not-for-profit insurance company, it is limited in its ability to write “third party” insurance contracts. To accommodate current and future third party insurance programs for students, faculty, physicians, staff, alumni, and UC affiliates, the University expanded the captive insurance company portfolio to include:
- Eureka Insurance Company, PCC
- Eureka One Insurance Company, ICC
- UC Health RRG, A Reciprocal Risk Retention Group.
The University’s captive insurance company portfolio provides an efficient framework with which to finance its organizational risks, as well as supporting insurance programs that benefit the entire University of California system. It also insures the University’s ability to adapt to uncertain risks that will arise in the future.