Captives

Home Captives
Group Health Captives Meeting About Captive Insurance Program & Supplemental Health Insurance

Group health captive insurance is the best opportunity for a mid-sized group (50 – 1000+) to truly impact employee benefits costs without cutting the quality of your benefits program. After switching to a self-insured captive insurance plan, companies that were previously fully-funded on a premium basis can typically save 12% – 15% in the first year alone.

How Does Captive Insurance Work?

With a traditional, fully insured plan, you must pay a fixed premium for the insurance company to assume risk of any claims. So, your insurance carrier keeps the money that is not spent every year, while you will incur massive increases at renewal if there are many claims on your plan.

But, captive insurance programs provide coverage for, and are controlled by, its owners. Organizations that are self-insured can save because their risk is now mitigated by a large pool of participants. Group health captive insurance takes advantage of the economies of scale and negotiating strengths inherent in a large census to reduce insurance premiums, lower risk profiles, and optimize tax savings. Plus, captive insurance participants can enjoy the distribution of potential underwriting and investment profits. Click here to learn more about how captive insurance programs work.

Benefits of Captive Insurance

A self-insured, captive insurance plan allows you to purchase administrative services and optional stop-loss insurance. As the employer and policyholder, you must pay medical claims as they are expensed. The employer would pay any additional fixed costs monthly. Self-insured plans offer:

  • Greater flexibility for plan design and customization
  • A fair system: The employer pays only for what claims are actually used
  • Cash flow advantage: The employer only pays a claim once it is paid to the provider
  • An option that state regulations generally do not apply to
  • Access to detailed claims data and usage trends for improved financial control

To learn more about fully-insured vs. self-insured plans, click here.

Hilb's InCap® Health Care Captive Program

Our team has years of experience with captive insurance and a proven record of successInCap® , our group health captive turnkey solution, is an excellent program that helps organizations lower health premium costs. It offers many benefits to participating companies, including:

  • Control of your plan’s benefits design
  • Avoidance of unanticipated rate increases
  • Data, cost, and communications transparency
  • No burdensome plan negotiation
  • Pooling of claims to control volatility and cash flow
  • Retention of underwriting profit and investment income

The Hilb Group Difference

When researching captive insurance options for your organization, you will realize that not every benefit advisor has experience with managing captive insurance programs. And, not every firm will be transparent with its fees and policies. These are two reasons why our clients choose to work with Hilb Group. We are a firm you can trust to communicate with you frequently and openly, which is essential when dealing with the sensitive matter of employee benefits.

To learn more about how we can help you save on benefits costs, please contact us today.

Have a Question?

Discover the Hilb Group Difference

Benefits Icon - Clark & Lavey

Benefits

Tailored benefits that meet your needs, and service that exceeds your expectations. We provide optimal cost-effective solutions that deliver long-term value.

Clark & Lavey Webinars Icon

Webinars

We invite you to join us for topical webinars on compliance, funding strategies, HR technology and the latest trends impacting employee benefits.

Clark & Lavey HR Support Icon

HR Support

Whether it’s day-to-day issues, strategic planning, or anything in between, our extensive HR services and Practice Leader are here with help and support when you need it most.