From: Captive.com/IRMI
At the 2025 Captive Insurance Companies Association (CICA) International Conference in Tucson, a panel discussion titled “Employee Benefits and Medical Stop-Loss: A Partnership between HR, Finance, Risk, and Markets” examined how organizations are using captive insurance strategies to manage employee benefits amid rising healthcare costs and regulatory challenges. Panelists included Prabal Lakhanpal of Spring Consulting Group, Adam Miholic of Revantage, and Matt Drakeley of QBE.
The panelists detailed how their organizations implement employee benefits within a captive framework. Mr. Drakeley explained that employers face three key challenges when buying stop-loss coverage in the traditional market: limited control over rates, inflexible underwriting terms, and the commercial insurance market retaining any underwriting profits. “Captives allow them to set their own rates, retain underwriting profits within the captive, and redefine the terms—turning healthcare financing into a more efficient, transparent process,” he said. Underwriting stop-loss coverage within a captive often involves working with limited data. Mr. Drakeley described how predictive modeling tools are used to evaluate potential catastrophic risk exposures, allowing underwriters to compare pricing models and refine terms. This gives stakeholders confidence in setting premium rates while ensuring the captive retains control over funding and claims. This iterative process, combined with collaboration across departments, helps align the captive structure with human resources (HR) timelines and organizational objectives.
The panel emphasized that careful alignment of regulatory approvals with HR’s open enrollment periods and budgeting cycles is essential. To ensure compliance and avoid disruptions, the captive team should engage early with HR departments, regulators, and internal finance teams. Frequent communication and education sessions help align all stakeholders on timelines and expectations. As Mr. Lakhanpal emphasized, one of the key benefits of the captive approach is budget certainty. “By moving away from a 1-year market cycle and building a multiyear partnership, we not only create financial stability but also open up opportunities to enhance employee benefits over time,” he explained.
