Tailor-Made Solutions for Benefit Plan Challenges

Captives | 6/22/2022

Written By: Denise Gillin

As a business owner or part of an organization’s leadership team, you know that benefits are a crucial component to attracting and retaining talent – a big challenge given the current workforce environment.

You also know that benefits are a big-ticket item hitting your bottom line – right behind payroll. Labor market shortages, along with continued increasing costs associated with healthcare plans, is making it hard for companies to stay competitive. Factoring in the expense of large claims and increasing pharmacy costs makes current increases unsustainable for all insureds.

Other obstacles such as dissatisfaction with fully insured renewals, the absence of carrier transparency and flexibility, and a hardened climate in the stop loss market further exacerbate the lack of sustainable medical plan choices.

However, it’s not all bad news; AssuredPartners has offerings such as employee benefits captives and cost containment strategies that provide solutions to these challenges.

What is a Captive?

Simply stated, captives are member-owned insurance companies that operate for the members’ benefit. That makes selecting the right captive manager and the right service providers fundamental to your decision. These relationships are important because not all captives are the same. Having the right partners is essential to building the best program for each organization as well as the entire membership. Therefore, to be eligible for this type of cost containment strategy, companies must be aware of and meet certain qualifications.

Captives Offer Options

Being an employer, your most common options are as simple as one, two, three: 1) stop trying to offer different benefits; 2) keep doing what you’re doing; or 3) embrace change.

For those open enough to choose to embrace change, how do you contain costs, remain competitive, and overcome the problems inherent in traditional insurance? On the surface, those might seem like more insurmountable problems, but our team of experts is ready to help your organization with a plan personalized to your specific needs. The process is simple, and it starts by figuring out what matters most.

The constantly evolving alternative risk landscape means being informed is crucial. With the creation of new captives and available relationships with captive managers, having a resource to manage the information and navigate the process is invaluable. At AssuredPartners, our team of employee benefits captive experts can help clarify your company’s perspective on tolerance for risk, importance of employee wellbeing, effects of culture on costs, consumerism of employees regarding your current benefits plan, and your organization’s appetite for change. The answers will help you establish what matters most to your company’s culture and the right solution for your workplace.