From: Captive International
Phillip Giles from Skyward Specialty Insurance provides an update for The evolution revolution of MSL captives, first published by Captive International in October 2022.
Interest in medical stop loss group captives has never been stronger, driven by the relentless rise in medical costs and employers’ ongoing search for more effective risk financing strategies. This growth shows no sign of slowing. With continued adoption among small to mid-sized self-insured employers, it is not unreasonable to project group captives accounting for 25% of the total stop loss market within the next few years.
The medical stop loss captive market has grown increasingly crowded and competitive as new programmes continue to enter the space. Yet in what has become a “noisy” marketplace, the challenge for new group captives is no longer just to participate, but to differentiate. Each must find a way to elevate their voice clearly, credibly and convincingly above the constant hum of competing programmes. So, what does it take for a captive to succeed in this environment?
Medical stop loss captives have evolved tremendously over the past several years. The new group captive programmes being built today represent what should now be considered the third or fourth generation of stop loss captive design – models that transcend the growing commoditisation of earlier generations by embedding continually progressive risk-control and cost-containment strategies. These modern captives no longer function merely as risk-sharing conduits; they operate as integrated, performance-driven platforms with clearly defined and measurable objectives.
