The Current Environment and Common Problems

Normally as a companies size increases so to do it's various insurance premiums. Some insurance lends itself to premium negotiating as company size increases (e.g. life & disability). Medical stop loss however normally generates a smaller premium as employers select higher specific excess coverage.

• From the insurers perspective insuring large numbers of employees and dependents increases the risk that claims will penetrate the specific. This means the insurers general block of business covers the loss amortization. With reinsurance being a small percentage of the insurers general block of business there is a reduced ability to negotiate renewal rates and claims issues.
• Whether times are prosperous or were in a recession, most buyers are cost conscious and should also be aware of the quality and financial stability of the carrier.
• It's important that a reinsurance carrier be financially stable. In the current "soft" reinsurance market, low priced reinsurance is available from carriers of lesser quality. Should severe claims materialize this could be a problem.

The Pool Offers a Solution

• A single carrier with a single industry of combined risk increases negotiating leverage for all companies in the pool.
• The medical underwriter can develop a large block of fully credible business.
• The pool shows an understanding of the rate needs of this risk. It will offer competitive rates, creative structure and year end financial incentives.
• The pool insurer will be rated Best A+.
• The pool will not require life coverage nor load rates for its absence.

For more information on how The High Tech Reinsurance Pool
might help reduce your reinsurance expenses contact: John Frigon, Employee Benefit Specialist

A Reinsurance Alternative For Cost Conscious Employers

As health care costs continue to rise, employers search for available alternatives other than the fully insured market to help contain costs. One solution that gives employers control over their plan is self-funding with the use of a reinsurance contract (stop loss coverage) and a pooling together of employees within the same industry.

The purpose of an "Excess Loss Insurance Trust" (The Pool) is o offer solutions, which help create a long-term stable environment for these similar risks. The pool will offer financial incentives with regard to premium rates and potential profit participation by pool participants to be attractive.