STOP LOSS GROUP CAPTIVES

UNIQUE SOLUTIONS FOR SMALL TO MID-SIZED EMPLOYERS

Crumdale Partners’ group captive program allows small to medium sized businesses to self-fund their employee healthcare benefits in the same way the largest employers do.

The Challenge for Employers

  • Historically, small to medium sized businesses (SMBs) have had fewer options to manage rising healthcare costs compared to large employers.
  • They typically lack the size and scale to adopt a self-funded model independently.

The Stop Loss Group Captive SOLUTION

  • This strategy has emerged as a viable means for SMBs to manage employee healthcare expenses.
  • It offers a way for SMBs to take control of these costs through collective risk management.

THE CAPTIVE VALUE PROPOSITION

Group Stop Loss Captives Offer:

  • Long term STABILITY over healthcare costs
  • TRANSPARENCY into claims costs and premium drivers

  • CONTROL into claims costs and premium drivers

  • CUSTOMIZATION of health plans that fit the employer
  • Employers retain what they don’t spend and have an opportunity for RETURNS

There are three layers in the employee benefits captive group

LEVEL 1: EMPLOYER SELF-FUNDED LAYER

MINE

Funds that each member employer retains to pay smaller, more predictable claims.

LEVEL 2: CAPTIVE LAYER

OURS

Risk above the employer self-funded layer is transferred to the captive layer designed to spread risk across a larger, cleaner pool while providing an opportunity to capture a return on premium. The captive layer enables stability and protection from large rate increases.

LEVEL 3: REINSURANCE LAYER

THEIRS

Protects the member self-funded layer and the captive layer from unknown catastrophic loss.

HOW DO GROUP STOP LOSS CAPTIVES WORK?

1

Each employer within the captive maintains their own claims fund to pay for smaller, more predictable claims.

2

Each employer is individually underwritten and issued a specific and aggregate stop loss policy which provides a safety net for high-cost or catastrophic claims.

3

Each employer must post collateral, which is required to be admitted into the captive program and pre-funds claims that might have hit the captive layer.

4

Each employer transfers a block of risk into the captive layer. In this captive retention layer, losses are the responsibility of the captive. Reinsurance covers the layer above the captive layer.

5

Through sound claims management, innovative cost containment, and loss control, employers can lower the cost of claims, and therefore reap financial dividends through the captive.

Why join a Crumdale Partners Group Stop Loss Captive?

The Crumdale Captive Advantage

Interested in learning more about Crumdale Captive Solutions?

Case Studies

Let’s work together

INSURANCE ISN’T NEW, BUT THE WAY WE TAILOR IT TO MEET YOUR NEEDS IS.

CONTACT US TODAY FOR A COMPLIMENTARY, CONFIDENTIAL CLIENT ASSESSMENT.