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IMPROVE

CA

PTIV

E

HOW CAPTIVE INSURANCE HAS HELPED

THE BOTTOM LINE

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An insurance companythat provides insurance

to and iscontrolled by its

members

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WHY PARTICIPATE IN A CAPTIVE?

?• Transparency• Underwriting Profit• Control• Predictability• Swimming in a cleaner pool

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YOUR PRESENTERS

Bob Madden

Medical Captive

Andy Gernold

Business Insurance Captives

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MEDICAL CAPTIVES: Lawley Proactive Health

• Provides access to and benefits of a self-funded health plan

• Generates stability using a group of like minded member companies to create a critical mass (law of large numbers)

• Leverage size of group to negotiate with service providers

STABILITY

GENERATING

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MEDICAL CAPTIVES: Lawley Proactive Health

• Emphasize wellness and disease management to lower health care trend

• Use other strategies to improve outcomes and lower costs (i.e. Rx claims management, specialty network for cancer care, technology to access cost of service tools to help employees navigate health care system)

• Guaranteed cost with min. & max. cost

GET YOUR COMPANY ON

TARGET WITH WELLNESS,

SERVICE TOOLS & GUARANTEED COST.

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LAWLEY BUSINESS INSURANCE CAPTIVES

• Means for safe, profitable, progressive businesses to get control

• Guaranteed cost with minimum and maximum cost• Risk/reward – known max with significant opportunity • Partner with other like minded businesses

IT’S TIME TO TAKE CONTROL

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LAWLEY BUSINESS INSURANCE CAPTIVES

• Direct input in claim process• “Skin in game” means accountability &

better outcomes• No state rates - premiums based on individual

member experience• “A” rated

YOU GET DIRECT INPUT

WITH CAPTIVES>>

YOUR OPINIONMATTERS.

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WHO SHOULD CONSIDER A CAPTIVE?

• Employers with 100+ eligible FTEs (minimum 50 enrolled)

• Leadership supported program

• Interest in participating in health care risk

• Have an interest to build a better worksite culture of health and wellness

• Letter of credit• Desire best-in-class

operation

• $125k minimum for WC, A & GL – WC only/anchor

• Underwriting profit++• Safety culture• Forward thinking

ownership/strong management team

• Control destiny• More responsive insurance

program

MEDICAL

BUSINESS

Hey! Are you hearing

about this captive insurance business?

Seems pretty neat!

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LAWLEY PROACTIVE HEALTH PERFORMANCE HISTORY

History (last three years)• 2012: 88% average loss ratio, (69-111%

range) = 7% less than fully insured premiums

• 2013: 65% average loss ratio, (50-77%) = 21%

• 2014: 75% average loss ratio, (50-103%) = 15%

National-Regional interest increasing for Medical Captive programs driven by success

and market demands to offset the Obamacare effect.

>> JUST A QUICK HISTORY LESSON.

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BUSINESS INSURANCE CAPTIVES PERFORMANCE HISTORY

• 1984• 97% member retention• Same cash in $ but ability to

recapture 35-50% of premium• Stable captive operating costs• Member examples – recycler &

commercial roofer

>> JUST A QUICK HISTORY LESSON.

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MEDICAL CAPTIVE FAQs

• Are companies joining under same pretense?

• What physician network will be available?

• How are each company’s costs and exposures determined?

• What impact will there be to my employees?

• Where do you go for help or questions?

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BUSINESS CAPTIVE FAQs

• How much will I pay in a captive?• What happens with a catastrophic

claim?• Is this a trust or a safety group?• How do I qualify?• Sample copy of a 5-year retrospective

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THANK YOUFor more info, visit: lawleyinsurance.com/captive

Follow us at: @LawleyInsurance