QBE flags benefits of captives in healthcare strategies

QBE North America has issued a report highlighting the benefits of integrating captive insurance into healthcare strategies and arguing they are now vital to employee benefits strategies.

The report notes that in the realm of employee benefits, the trend towards self-funded healthcare is unmistakable, as the regulatory landscape continues to change, and healthcare costs continue to escalate.

It outlines five key advantages: frictional cost reduction, enhanced risk management and long-term stability, customization and flexibility for employers, efficient utilization with potential dividend returns and improved leverage with carriers and service providers.

As businesses grapple with escalating healthcare costs and a shifting regulatory landscape, understanding the strategic value of captives becomes increasingly crucial, QBE notes.

“Captive insurance solutions are gaining traction because they allow employers to maximize control, spread risk and enhance negotiating power,” said Tara Krauss, head of accident and health at QBE North America. “With a self-funded health plan, companies are not just buyers of insurance, but stewards of risk management.”

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