THERE IS SAFETY IN NUMBERS
CAPTIVES DON'T CHANGE WHAT YOU BUY, JUST HOW YOU BUY
When a company is small to mid-sized, the insurance risks they experience are far less predictable than those of larger companies. TSE has created an insurance captive, which enables your company to join with other like-minded staffing employers, to create a pool large enough to duplicate the predictability of a large, single company, usually a group with 1,200 to 7,000 participants.
Although individual staffing companies purchase each health care component separately, they become a member of a much larger entity, the TSE captive, which can document more predictable data for claims, and create safety in numbers. The group captive model uses over half of the typical specific stop-loss premium to fund a “captive layer” shared among all members. This added layer of risk protection helps to even out the ups and downs of any one employer, and provides greater risk diversification through the larger pool.
This diversification mitigates risk to each individual company, as shown on the chart below.
- A company of 50 employees has a 1 in 5 chance of having a bad claims year (20%).
- A company (or captive) with 400 employees has a 1 in 20 chance of having a bad claims year (4%).