For many organizations, Risk Management and Human Resources (HR) operate independently with little to no interaction. Each department manages separate lines of insurance with both working towards similar goals; trying to reduce the cost of insurance while providing the greatest coverage for employees and the organization.
Companies for some time now have reduced the costs of their Property & Casualty (P&C) risks by utilizing a captive. Today, this alternative risk transfer technique is also available and utilized for funding employee benefits.
With the ongoing and constant rise in cost for employee benefits including healthcare, life insurance, disability and retiree medical benefits; captives are emerging as an attractive option to controlling those costs.
The HR department historically is the one that manages employee benefits including intricacies of plan design, regulations and mandates. With companies expanding their captive’s use to fund employee benefits, it is imperative the Risk Managers have a tool to understand how they can work with their HR colleagues to successfully fund employee benefit programs through a captive.
Spring’s Funding Employee Benefits in a Captive – A Risk Managers Guide outlines the advantages to funding employee benefits in a captive arrangement and provides guidelines on how to structure this type of program.
Companies who choose to fund their employee benefits through a captive have benefited from the following:
- Reduced and guaranteed premiums for insurance coverage
- Reduced risk and fronting changes associated with the plans
- Custom employee benefit plan designs that are not traditionally offered in the commercial marketplace
Given this environment, Risk Managers are now exploring the option of increasing their captive’s capabilities and funding their employee benefits programs.
If you wish to receive a complimentary copy of Spring’s Funding Employee Benefits in a Captive – A Risk Managers Guide, please fill out the form below and click download.
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