Self-insurance is "a risk management approach which involves a formal decision to retain risk rather than simply purchase it from a conventional commercial insurance company. Whilst the main objective of self-insurance is to save premium and improve a company's financial performance, self-insurance differs from standard insurance programs in that it requires a company to adopt many of the functions of a traditional insurance company.”
In 2015 US market research on the distribution of health plan funding mechanisms showed that 42% of health plans are self-funded - with one state, Wyoming, reaching a peak of 82% - and that the percentage of companies choosing to self-insure has been consistently growing over the past few years.
The explanation of this positive trend is quite simple. The principal aim of self-insurance is to improve a company’s operating profits by reducing its claims and premium costs. Moreover, it allows a bespoke plan design, an improved claims experience, faster loss settlements and potentially an improved cash flow.
However, the insurance industry is people-focused, and self-insurance is no exception - but this means there can be a lot of time searching for the right person. This sector of the industry would benefit greatly from a network helping professionals and companies to find each other and do business more easily, with less wasted time and administrative hassle. Creating self-insurance programs often requires the support of several service providers, which can be a source of unwelcome complexity.
SelfInsuranceMarket.com is an online portal built to offer tailored information and advice to self-insurers, and to host listings of relevant service providers. Through our company search and business inquiry facilities you can easily reach out to brokers, captive managers, third party administrators, excess insurers - or any other type of provider.
The unique platform can provide solutions to:
It’s all in the same place. So no more time-wasting, instead giving users the opportunity to easily compare options and decide on the most valuable choice for their needs.
If we think about employer stop loss insurance - just a slice of the self-insurance market - there are nearly 30 to 40 third party carriers and another 30 to 40 direct writers/health plans, such as the large national carriers like Aetna, Cigna, and United Healthcare, regional health plans, and local licensees of the Blue Cross brand.
This count does not include several additional carriers that provide coverage through managing general underwriters.
The growth of the market will likely attract new entrants as well, so it is becoming more and more important to identify and connect the right people; fostering this particularly collaborative branch of insurance. This is exactly the aim of SelfInsuranceMarket.com.
The service will be initially available for a six month free trial, giving users the chance to evaluate the benefit for themselves before committing a slice of their budget. Given the importance of today’s need to be always connected with the world around us, SelfInsuranceMarket is also working on the realization of a convenient mobile app.
SelfInsuranceMarket.com was officially re-launched in Austin, Texas, at the world’s largest event focused exclusively on the self-insurance/captive insurance marketplace - The SIIA National Educational Conference & Expo - making a great impression among eminent figures in the field. Experts were quick to recognize the value this platform can bring to the dynamic sector.