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Insurance Brokers! Higher commission and better rates are here!

Attention brokers! Do you want to get higher commissions and better rates for your clients? Look no further! SBMA provides the most competitive rates for your minimum essential coverage. Our goal is to make you look like a rockstar for your clients while making more commission.

What is the difference between standard market insurance programs and captive insurance programs?

What is the difference between standard market insurance programs and captive insurance programs?

Captive insurance programs offer a creative solution to insurance policies. What is the difference between standard market insurance programs and captive insurance programs? We’re here to breakdown the differences.

What is a captive insurance company?

A captive insurance company provides coverage to its owners. In other words, the insurance company is owned and controlled by its insured. When you invest in a captive insurance company, you see all the components of the premium and play a part in the pricing and delivery of the premium. 

Among captive insurance companies are group captives. These are an insurance facility for unrelated participants who join together to share risk. You are able to control what you add and subtract to suit your specific situation.

So, what is the difference between standard market insurance programs and captive insurance programs?

In a traditional insurance program, the insurance carriers take on all risks and retain all profits. With captive insurance, the captive participants share in the risk for a potential reward of lower costs, underwriting profits, and investment incomes.

Captive insurance programs and traditional insurance programs are not mutually exclusive. In fact, a lot of traditional insurance companies work with captives to reimburse claims. 

Why should you take the risk of a Captive Insurance policy?

Companies typically take the risk on Captive because the opportunity to capture the profits your fully-insured carrier typically takes in. 

When you compare traditional and captive programs risk, the captive may appear to have more risk initially. However, Captives offer long-term solutions and control your risk over time. If you are unhappy with your current traditional health insurance program, consider whose interest your large insurance company is looking out for.

How exactly does Captive insurance protect you from catastrophic losses?

Captive programs include the protection of reinsurance/ stop-loss agreement that limits any catastrophic or aggregation of risk. The program’s reinsurance structure limits the participant’s maximum loss. In addition, this means the participant will never need to fund more than the premium and collateral.

Why do Captives require collateral? 

Captives require collateral to ensure the funding of the captive assumed risk above the premium, net expenses. This ensures all potential losses are funded up front and participants are not required to contribute more money.

Captive insurance programs can be extremely beneficial to business owners. Employees will notice an increase in wellness, personalized guidance, and technology advancement that bridge the gap between healthcare and benefits. At SBMA, we can partner with other networks that may meet your employee needs better.

t you need to know about captive insurance

Brokers: Are you offering your ALE clients the most affordable MEC?

Brokers: are you offering your ALE clients the most affordable MEC?

Attention Brokers: Are you offering your ALE clients the most affordable MEC?

Attention Brokers: Are you offering your ALE clients the most affordable MEC? How can you offer your applicable large employers a one-stop-shop for all their needs? Benefits are no longer about simply meeting Minimum Essential Coverage options.  You need to offer worksite and voluntary benefits, telehealth options, call center availability, and easy portal management. Why should you offer these options to your employers? Because they want them.

In order for employers to attract and retain great talent, they need great benefit options. This means going beyond standard MEC requirements and offering services that provide value and attract the best workers..

Let’s start with voluntary benefits.

Worksite and voluntary benefits include accident insurance, term life insurance, critical illness insurance, and hospital indemnity. 

  • Accident insurance includes aid in payment for medical and out-of-pocket expenses that may occur due to an accident occurring.
  • Term life insurance includes a way to provide financial protection for loved ones while employees are working.
  • Critical illness insurance adds a safety net for those who are under-insured. 
  • Hospital indemnity benefits help to offset high deductibles and out-of-pocket expenses so a hospital stay does not become a financial crisis.

Next, consider offering your employees access to telehealth care.

With 24/7 access to doctors, telehealth, also known as Virtual Health, can help employees get care when they need it with added convenience. At SBMA, we offer telehealth options that include behavioral health and therapy access, to give employees the ability to speak to a therapist whenever they need it*. In addition, it helps employees receive necessary prescriptions without having to go to a doctor’s office.

Employers look for convenience when looking for benefits, as a broker you can provide a one-stop-shop for all your ALEs benefits needs. This means 24/7 call center support and easy access to portal management, single point billing, and US-based customer care. 

At SBMA, we offer portal management access to provide employers with the ability to make plan changes, order ID cards, and have them shipped within a few days, check their claim statuses, and give employees the ability to manage their own profiles. 

With bilingual call center support, you’re getting licenses representatives to help manage enrollment and provide year-round support. All of our representatives are in-house, which means they understand your client’s needs.

SBMA can provide a one-stop-shop for all employers to handle their benefit needs. As a broker, it is your responsibility to provide your employers with the best possible options for their needs. Contact us to learn more!

*3X/year

voluntary benefits ale