Identifying and assessing the key elements, characteristics and features of a captive health insurance company is vital for a broker or business owner's overall success when selecting a captive insurance partnership.
“We just did our first call with our account manager, Samantha, and she was great,” Robin Gallagher, CEO of Allyon, a healthcare staffing solutions provider, said. “She wanted to go over reports and kind of explain what she was seeing and that was really beneficial and helpful. I do that myself but for somebody that wasn’t as familiar with that, would have been really helpful to have.”
Businesses or brokers looking to move to a captive healthcare insurance model, or a different captive company, needs to consider things like the domicile's long-term stability, cell demographics, regulatory environment, support services and management, growth ability, overall true cost to join and reputation before making a final decision, according to Risk & Insurance.
Each of those factors should be considered to help determine the overall success of not only the captive insurance company itself but also a partnership's potential success.
Choosing a long-standing company that offers regulatory and infrastructure support is beneficial as they tend to be more efficient in their management and operation, making them a successful risk management tool. Other things to look at are the gross premium, tax revenue and fees collected, regulatory environment size and consistency, ease in onboarding and collaboration and expert staff availability.
Everlong Captive Health Insurance is a company working to provide group health insurance that benefits each employer owner and broker.
"Everlong is an exclusive Captive composed of employers with smart, forward-thinking broker-consultants who are willing to adopt a better way to control their health care costs and improve employee health,” the company says on its website. "Our purpose-built, high-performance health insurance captives are leading the way for employers to purchase group health insurance, control plan costs and improve employee health through innovative solutions."
Everlong Captive Insurance provides stability with a 3.6% average stop-loss since 2011; dividend and reporting transparency; independent, non-private equity owned captive managers and diverse package selections for owners. Its model is "nimble enough to navigate the foggy path ahead while designed specifically to help mid-size employers achieve industry-leading stability and performance,” the website says.
"The staff has been incredible, and the other thing that I want to say is, your reporting is different," Gallagher said. "So, you give us a lot more insight into the reporting aspects so that we can really drill down and make more effective changes."
Captive managers play a vital role in captive insurance development, establishment and overall success as they are central in handling client accounts and providing quality services.
"That’s why we cap it to 50 owners, so, you get to have that networking, everybody knows each other and it’s kind of beautiful to see in the room,” Tomasz Banach, the COO and a principal at Everlong, said of Gallagher’s point. ”It’s about what we’re doing in our captive, like Robin said, to really get down on the bottom line and get a handle on the claims and what you can do. So, you’ll have that transparency with the reporting, also the stability too, and the renewals. That’s one thing we’re super excited about.”
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