medTRANS Insurance - 3x3x3 Challenge with Phil Holowka
medTRANS Insurance, Ltd is a Nevada captive insurance facility. medTRANS is 100% governed & controlled by its mutual owners. medTRANS is not your typical garden variety "group" captive.
Transcription:
What is medTRANS Insurance?
Thanks, Chris. medTRANS Insurance Limited is a Nevada-domiciled captive insurance company, which is 100% member-owned and controlled. It has been in operation since April 28th, 2010. My firm, Complete Captive Management Services is the engaged captive manager. medTRANS is the flagship medical stop-loss captive under management.
How is medTRANS Insurance different?
There are several differentiators from this structure than the garden-variety group medical stop-loss captives on the market today. The medTRANS structure allows each employer to have their own protected cell captive. This protected cell has single-parent ownership, meaning each employer, the parent, owns the captive at 100%. There are multiple advantages to the employer who use this structure, which are not available within a group captive model, then, mutually, every cell captive owns medTRANS 100%. Originally, medTRANS was fronted by a commercial carrier. Over time, those members discovered the fronting carrier's interest did not properly align with their interests. Therefore, in 2016, the members changed their structure to what it is today. medTRANS is a direct writer of medical stop-loss policies. medTRANS and the single parent captives are not fronted by a stop-loss carrier. This is another big difference. Not having a fronting carrier allows the captive to have more control with less expense. This is important feature, often misunderstood by group captive members and other brokers. The fixed expenses built into a premium pricing, known as the expense load, with a group captive is usually 30 to 45%. These expenses are expressed in the bordereau report and the captives' audited financials. The captives in the medTRANS model have an expense load of roughly 16%.
Who is a good fit for medTRANS Insurance?
Generally, a direct writer captive is ideal for larger, more sophisticated employers. To us, that means employers with 100 plus employees on the plan and usually those already self-funded.
Transcription:
What is medTRANS Insurance?
Thanks, Chris. medTRANS Insurance Limited is a Nevada-domiciled captive insurance company, which is 100% member-owned and controlled. It has been in operation since April 28th, 2010. My firm, Complete Captive Management Services is the engaged captive manager. medTRANS is the flagship medical stop-loss captive under management.
How is medTRANS Insurance different?
There are several differentiators from this structure than the garden-variety group medical stop-loss captives on the market today. The medTRANS structure allows each employer to have their own protected cell captive. This protected cell has single-parent ownership, meaning each employer, the parent, owns the captive at 100%. There are multiple advantages to the employer who use this structure, which are not available within a group captive model, then, mutually, every cell captive owns medTRANS 100%. Originally, medTRANS was fronted by a commercial carrier. Over time, those members discovered the fronting carrier's interest did not properly align with their interests. Therefore, in 2016, the members changed their structure to what it is today. medTRANS is a direct writer of medical stop-loss policies. medTRANS and the single parent captives are not fronted by a stop-loss carrier. This is another big difference. Not having a fronting carrier allows the captive to have more control with less expense. This is important feature, often misunderstood by group captive members and other brokers. The fixed expenses built into a premium pricing, known as the expense load, with a group captive is usually 30 to 45%. These expenses are expressed in the bordereau report and the captives' audited financials. The captives in the medTRANS model have an expense load of roughly 16%.
Who is a good fit for medTRANS Insurance?
Generally, a direct writer captive is ideal for larger, more sophisticated employers. To us, that means employers with 100 plus employees on the plan and usually those already self-funded.