Captive Overview

Is a Captive Right for You?

You are a different kind of employer, you might be ready for a different kind of employee benefit solution. In a marketplace that readily delivers 15-20% increases at renewal regardless of loss ratio, you may want to consider an alternative insurance option. If you are tired of the bad behavior of other employers being dumped into your risk pool and would rather be rated with like-minded, progressive companies, you want a group benefit captive plan.

Member owners in a group captive tend to be companies that focus on enhancing their risk management programs and are fiscally responsible. The owners in a captive approve the admittance of new members. We hand select interested companies based on necessary qualifications. This results in a captive whose members tend to be financially sound with limited risk.

Consider a captive if your business has:

  • favorable loss history
  • financial stability
  • an entrepreneurial attitude
  • a desire for long term cost containment solutions

Captive Overview

With the cost of benefits increasing at a frightening pace, employers are looking for alternative health financing solutions. Group benefit captives have been utilized for many years to contain costs, increase stability, and mitigate risk. Teneo Health has built a high-performance group benefit captive for mid-market employers. We've combined best-in-class vendors with a care coordination and navigation solution which allows our members to control their healthcare journey.

A group benefit captive is an insurance program that provides insurance to, and is controlled by, its owners. We bring high performing employers together to participate in ownership and share risk for their plans. In short, you (and several other like minded businesses) own the company that provides your group health insurance. Which means that you have greater control, and you – not an insurance company –benefit when the captive is profitable.

Under traditional insurance programs, premium costs are dictated by unpredictable market conditions and industry averages. This scenario can be frustrating for employers that have worked hard to invest in long term initiatives to keep their costs down and their employees well. These responsible employers are tired of paying for the bad behavior of other employers. In a group benefit captive program, employers pay premiums based on their group captive loss experience which keeps costs low and creates stability from year to year. In addition, employers retain their unused loss funds and the investment income associated which creates improved cash flow overtime.

There are minimal administrative obligations. The program is administered by a captive management company that provides the necessary structure, claims management, legal, accounting and other functions necessary to operate.

Benefits of a Captive

A captive insurance program provides a unique opportunity for business owners to save tax dollars, contain costs, and put more money in their bank accounts, while continuing to offer competitive benefits for their employees. While there are many benefits of a group benefit captive, some of the main points are:

  • greater control over your insurance program
  • tax benefits
  • investment income
  • premium calculation is based on your group loss history, not industry averages
  • premiums will be available to fund losses and generate investment income
  • independence
  • healthier workforce
  • networking with other shareholders to enhance risk management

Teneo Health has the expertise necessary to help you realize the benefits of a group benefit captive. We have paired our extensive self-funded knowledge with best in class vendors that are tried and true to bring you the ultimate captive solution.