Stop loss group captive formed for US employers
A managing general underwriter agreement between a captive manager and an insurer to provide a “one-stop shop” to group captives became effective today.
Captive manager Roundstone Management and Nationwide Life Insurance Company have said they intend to be “the only resource for a one-stop, complete, turnkey, group captive underwriting facility offering stop loss coverage”.
Roundstone has established a captive to cover third-party stop-loss risks for group captives. All of the employers share risks, Nationwide insures the risk and then it is reinsured back through the captive.
Syed Rizvi, vice-president and chief specialty insurance officer for Nationwide, said: “The partnership reflects our overall optimism about the continued growth of self-insurance and further expansion of the stop loss market post-ACA (Affordable Care Act).”
Michael Schroeder, president of Roundstone, said: “Mid-market employers who are self-funding healthcare can purchase stop-loss coverage from the captive, Roundstone Insurance.
“We have a new relationship with Nationwide where we are expanding our underwriting authority to give a more complete offering to employers.
“For this product a group captive is great way for mid-market employers to pool their risk. Group captives allow them to assume more risk without taking on more volatility,” said Schroeder.