Health and Welfare Captives
Why evaluate a Captive?
The advantages of captives are multiple and can be significant:
- Potential short and long-term cost savings
- Customized employee benefits designs and property & casualty programs
- Enterprise risk financing applications
- Potential financial efficiencies like cash flow and insurance
Those are just a few of the benefits of captives. The bottom line with captives is that they offer significantly more efficiency, flexibility and control than a typical fully-funded solution. If this sounds even slightly appealing, you owe it to your company and your employees to to learn more about the Captive as a solution to manage the ever-rising costs of group health insurance.
Save and Manage Costs
- Accelerate cash flow through premiums, claims and reserves
- Reduce costs (taxes, risk charges, administration, underwriting)
- Capture investment return
- Improve cash flow and centralize investment of reserves
- Captive underwriting savings
Increase Control
- Design coverage and provisions of benefits
- Improve data management and claim cost management
- Remove insurer’s profit loading
- Improve management reporting and understanding of risks
Improve Risk Management
- Operate and manage a central risk pool
- Implement appropriate stop loss reinsurance to manage peak risks
- Reduce overall cost of risk