Risk & Business Magazine Marcotte The Magazine - Winter 2018 | Page 4

CAPTIVE INSURANCE
Should You Consider
Captive Insurance?
I
BY: BILL BARCLAY LUTCF
ACCOUNT EXECUTIVE
EMPLOYEE BENEFITS
4
f you are like many employers these
days, you may be scrambling to come
up with affordable ways to maintain
the health insurance benefits your
staff is accustomed to without
breaking the bank. Driven by higher
costs for pharmaceuticals, increasingly
sophisticated technology, and an aging
population, it seems as though the upward
trend in premiums is here to stay.
Traditionally, the only option for small-
and medium-sized companies was to
purchase a fully insured plan through
one of a handful of insurance companies.
There is, however, another option that
has become popular in recent years and is
ideal for many companies previously too
small for alternatives to the fully insured
marketplace. Insurers and reinsurers have
recently started offering self-funded captive
programs to groups as small as 50 to 100
employees.