Employee Benefits
Webinar: Is Captive Insurance the Right Solution for Your Business?
April 3, 2025
In a June 2024 article for Managed Healthcare Executive, the publication’s managing editor, Peter Wehrwein, wrote: “… self-insurance is no longer just the province of large employers. An increasing number of small- and medium-sized employers are jumping out of the conventional group insurance market and self-insuring. Experts say they are doing so for many of the same reasons that large employers do.”
As we’ve noted in previous Alera Group Insights posts, foremost among the reasons businesses of all sizes are opting for Captive Insurance — a programmatic approach to self-insurance — are:
- The possibility of significant savings;
- Increased control of claims and risk management strategies;
- Customized coverage;
- Greater transparency;
- The opportunity to earn dividends based on the Captive’s experience.
“Moreover,” Wehrwein continued, “insurance brokers and insurance companies have worked to make self-insurance more appealing to smaller employees by bundling (third-party administrator) services with stop-loss insurance that functions like insurance for high-cost claims.”
What you’ll learn
Join Alera Group on Thursday, April 17, for a webinar on self-insuring through a Captive program. Our experts will discuss how Captive solutions work and what you need to consider for your own group’s needs.
During our presentation, we’ll discuss:
- What constitutes a Captive;
- The three basic types of Captives — single-parent, group and cell — and how each works;
- The role and function of Stop-Loss Insurance in a Captive program.
We’ll also examine a case study involving a Medical Stop-Loss Captive, comparing net cost with a Captive to net cost with coverage through a traditional Medical Insurance carrier. (Spoiler alert: Savings with a Captive would be significant.)
You’ll come away with not only a better understanding of Captive Insurance programs but also a clearer view of whether a Captive solution is right for your business.
Savings drivers, explained
Why are Captives so effective at saving their member-owners money by self-insuring? There are four main reasons:
- Insurance carriers are making substantial profits. When you own a Captive, most of the profit turned by the insurer is returned to you.
- This typically allows participating members to beat the market trend and therefore bend the healthcare cost curve.
- Members of a Captive generally pay lower administrative costs, resulting in greater savings.
- Captives are able to access solutions that may be unavailable through traditional insurance.
We’ll go into greater detail in our presentation and field attendees’ questions, responding to them in a panel discussion.
Attractive option in turbulent economic times
Last fall, Insurance Business magazine interviewed me for an article it subsequently titled “Why captives will disrupt the insurance industry in 2025.” During the interview, I explained how recent economic shifts and a hardened insurance market exacerbated by the pandemic had increased interest in Captive programs.
“COVID changed the risk makeup for a lot of employers,” I said. “The resulting ‘perfect storm’ led many to seek alternative risk strategies, with Captives gaining traction as a cost-effective and flexible option.
“Group captives are now catering to different segments in the market, usually on the smaller side, while cell captives serve mid-sized markets,” I added.
Since that interview, the economy has only become more uncertain, potentially further increasing the appeal of Captive Insurance as a viable business solution. Is it right for your business? Join us on April 17 to help you decide.
About the author
Prabal Lakhanpal
Senior Vice President
Spring Consulting Group, An Alera Group Company
As vice president of Spring Consulting Group, Prabal Lakhanpal provides technical and business consultation in the areas of employer-sponsored and voluntary employee benefits, product development, technology solutions and risk-funding solutions, as well as Captive Insurance. He undertakes strategic projects to help find innovative solutions for clients in a variety of industries, sizes and functions. Prabal joined Spring Consulting in 2015 after earning his master’s degree in business administration from Babson College. He is also a graduate of the University of Delhi. He has worked as a consultant and adviser to clients in various industries and sectors.
Contact information:
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