Being member owned and directed, medical stop-loss group captives offer their participants an opportunity to make a transition from being passive purchasers of stop-loss coverage to jointly owning a stop-loss reinsurance company.

As owners of the stop-loss captive, members of the group make the decisions on how the captive operates, said Joe Parrilli, senior vice president at Captive Resources LLC.

“As a captive consultant, we do not show up and drive the captive forward; we do not make the decisions for the members,” Mr. Parrilli said. “We continue to facilitate ideas, which then they decide how their reinsurance company is going to move forward.

“That, compared to the traditional marketplace, is one of the reasons that captives have become more important, have become more of a conversation,” he said. “Groups have gotten a little fed up with what’s going on in the traditional market. So, having that ownership is a key within a captive and a reason we have seen them become more successful.”