Captive Stop Loss

Stop loss captives allow employers to share a layer ofpredetermined risk among a larger population. The sharing of the risk layer insulates individual employers from higherclaim fluctuations as single claims are absorbed into a larger poolingarrangement.  However, starting your owncaptive can be a very time consuming and expensive process. Tokio Marine HCC –Stop Loss Group has developed an approach that is both efficient and sensible.  The growth we have experienced as a companycombined with the continued success of our captive partners is evidence thatour approach is worth considering. 

Highlights

Why choose Tokio Marine HCC for your stop loss captive?

  • Tokio Marine HCC is a direct writer - Many competitors only run stop loss captives; charging fees without assuming any risk in the captive.
  • Tokio Marine HCC underwrites to the risk of each member group which impacts claims outcome and potential profitability that goes back to the captive members. We focus on growing programs through preferred risk pools and solid performance.
  • Tokio Marine HCC’s fee structure is among the most competitive in the market.
  • Tokio Marine HCC’s underwriters are regional experts who consistently offer competitive pricing and profitable results.
  • Tokio Marine HCC provides both our traditional stop loss and captive proposals allowing a broker to compare/contrast both alternatives to their client.
  • Tokio Marine HCC's captive model: The employer pays their premium and a predetermined portion is ceded back to the captive to cover potential claims between the employer's deductible and the captive's excess deductible level. HCCL reimburses eligible claims above the employer's deductible, same as traditional stop loss, and is then reimbursed by the captive. If a claim exceeds the captive's excess deductible it is HCCL's full exposure. The captive is also protected for aggregate exposure. Premium remaining in the captive at the end of the treaty year are distributed back to the captive/member groups as profits.
  • Each group can chose their preferred TPA, network, schedule of benefits, group specific deductible level, etc. The information required to produce a captive proposal does not vary from the traditional stop loss requirements.
  • Tokio Marine HCC manages the captive behind the scenes by experts in accounting, law, regulatory and compliance. We provide fully transparent monthly reporting to the producer…there are no hidden costs or fees.
  • Tokio Marine HCC’s financial stability (A++ ratings by A.M. Best Company).
  • Tokio Marine HCC allows collateral to be paid on a monthly or annual cash basis or through a line of credit.
  • Tokio Marine HCC’s turnkey captive development model offers every function a stop loss captive needs:
    • Stop loss policy direct with the member groups
    • Onshore captive cell facility in Nevada
    • Captive management
    • Reinsurance Agreements
    • Participation Agreements
    • Full back-room capabilities
    • Ability to work with third party captive managers

Our expertise, service and program design help make Tokio Marine HCC a leader in the captive stop loss market.  Please contact us to learn more.  

Related Products

Why Tokio Marine HCC?

Tokio Marine HCC is a leading specialty insurance group with offices in the United States, the United Kingdom, Spain and Ireland, transacting business in approximately 180 countries and underwriting more than 100 classes of specialty insurance. Our products and capabilities set the standard for the industry, and many of our almost 3,000 employees are industry-leading experts. Each of our highly entrepreneurial businesses are equipped to underwrite special situations, companies and individuals, and acts autonomously to deliver effective solutions. 
Our financial strength ensures our clients will always be protected.

Our financial strength ensures our clients will always be protected.

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Tokio Marine HCC Product Breadth

Our holistic portfolio of products includes more than 100 classes of specialty insurance

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Tokio Marine HCC is part of Tokio Marine, a $31 billion company.

Tokio Marine HCC is part of Tokio Marine, a $31 billion company

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