In the last 12 months, the US market has seen further growth in the number of employers seeking to write their employee benefits through a captive. Employers seek the attractive cost savings, the more even distribution of risk and the opportunity to develop a consistent employee benefits policy throughout the world, wherever their business is operating.
This report contains expert analysis of these advantages, as well as the trends and challenges that have emerged alongside the surging popularity of captive-written employee benefits.
Much of the discussion on offer in this report concerns developments in US legislation and the impact this had on the demand for self-funded health benefit solutions. Specifically the Affordable Care Act is discussed and the impact this has had, particularly with regard to small- to medium-sized employers.
Also under analysis is the popularity and re-emergence of the Department of Labor’s fast track process for the approval of employee benefits written through a captive, ExPro. ExPro’s popularity has developed to a point at which it accounted for 75% of approvals in July of this year.
Synergies between different departments is critical in ensuring the efficiency and success of any organisation. This is no less true in the transfer of employee benefits to a captive. Contributors to this report offer insight into how to maintain a strong working relationship between risk and HR departments in this arrangement.
Another interesting theme that emerged in this report is discussion of how best to measure the suitability of a captive solution for an employer. Naturally a captive solution will not always be the most appropriate decision and not all captive solutions are identical. It is paramount that the right product is sold to the right client.
This edition of Captive Review’s Employee Benefits report is the culmination of the expertise of some of the captive industry’s most well-informed individuals. They offer insight and analysis of the last 12 months, as well as fascinating predictions about what awaits the US insurance market in 2016.