A non-profit multi-state health system with 35,000 employees, wanted to conduct a feasibility study to determine if captive funding could:

  • Generate employee benefit cost savings
  • Improve operational performance
  • Increase cash flow
  • Enhance benefits
  • Improve employee participation


Spring assessed basic life, supplemental life (including spouse and dependent child coverage) and long-term disability with identifying fully insured basic life and supplemental life as potential candidates for captive funding (estimated $1m in savings). Long-term disability was eliminated as a candidate due to current funding and the non-profit status of the company.

Spring’s Solution

Spring proposed using a fronting company arrangement and to re-insure benefits through a captive. Our experts assisted with qualifying and selecting a fronting insurance company, one who is recognized for outstanding plan implementation and administration. Spring also worked to establish a captive branch on-shore, as required by the Department of Labor (DOL) and completed the application to submit for approval by the DOL.


The first-year projected savings were $500,000. Life insurance claim payments improved from 1 month to 3-5 days, and the company was able to be more responsive to clients’ requests. Additionally, employee participation increased by 8.5%.

Benefit enhancements included:

  • Doubled life coverage for spouses and children
  • Enhanced accelerated health benefits
  • Added beneficiary counseling, legal services and travel assistance for emergency medical needs