Stop Loss Captive
Image: captive.com
Joseph DiBella is a business executive and consultant with decades of experience in the employee benefits industry. Also an expert in health care reform and the Affordable Care Act, Joseph DiBella currently applies his knowledge as the managing director of Conner Strong & Buckelew’s Employee Benefits Division.
Conner Strong & Buckelew is a New Jersey-based consulting and brokerage company that serves the risk management, insurance, and employee benefits sectors. The firm, which was founded in 1959, offers a variety of innovative solutions in the area of employee benefits, including a benefits stop loss captive option.
Designed for businesses with between 100 and 300 employees, the stop loss captive solution allows the formation of a customized and manageable insurance entity. The program works in three layers.
The first is a self-insured layer, in which the employer handles small claims. The middle layer, known as a captive layer, is a pool that the employer pays into to handle medium-size claims. Profits and losses from this captive layer are shared by the employer. Lastly, a transfer layer shifts risk to an insurance company that handles catastrophic claims.
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