Managing Risk on a More Stable Basis

The Challenge

A group of employers in the brokerage industry wanted to combine their stop loss risk so they could leverage their collective purchasing power on a more stable basis. Standing in their way were state laws effectively prohibiting multiple employer welfare arrangements (MEWA) in their domicile, inhibiting their ability to create such a structure.

The Solution

Excess Reinsurance established an efficient and innovative process for issuing separate stop loss policies to each group, then ceding a portion of the risk to a captive insurance company. In this case, we utilized the services of our sister company in Bermuda, Argo Capital Group, Ltd., to form the segregated cell captive and to manage the transfer of risk to the captive.