While the insurance market globally has seen a year full of volatility and uncertainty, the captive insurance market had tremendous growth in comparison. Everlong CEO and Founder Doug Truax said his company, like other captive health insurances, is for those looking to lower cost and who are tired of traditional insurance.
"Everlong Captive sets out to get your clients from where they are and thinking today, to where they need to be tomorrow. Everlong drives their focus through claims management and constantly bettering their clients position," Truax said in a podcast.
Hylant Global Captive Solutions contributed a Thought Leadership article for Captive.com, stating that the global market was filled with a year of uncertainty and captive insurance saw significant growth due to its ability to address other risk exposures.
According to the article, captive insurance in general is being used to address extended nontraditional risks like traditional property and casualty risk, life, supply chain, cyber and others. Companies are recognizing more now that traditional coverage has not always allowed for extended risk to be covered, according to the article.
Companies have also become more interested in in-house risk management within the past few years as compared to relaying most risk management activities to its insurance brokers. This increased new focus has been a direct result from the COVID-19 pandemic, which the article says companies are still recovering from. As part of that recovery, the workforce shortage and adoption of new technologies has uncovered previously unseen problems which in turn created new risks or increased existing ones. This has paved the way for creative risk retention strategies, according to the article.
The article states that captive insurance has grown universally in all sectors, but there has been a particular interest in captives by medium-sized businesses like not-for-profit organizations or third-party solutions as companies offer extended warranties for larger retailers.
Another point of interest is a growing trend and interest toward the use of cell captives, which allows for a faster transition for businesses in the approach and operating cost efficiency when switching from traditional insurance. In the past, companies believe they were not large enough to participate in captive insurance coverage or had no concern in the need of additional resources provided by captives. Cell captives have become easier to access as well as more affordable while also allowing for substantially less time involved than a single parent captive, the article states.
"Cell captives provide not only an entry point for organizations but also serve as an incubator for exploring the viability of captive strategies. For example, an organization may join a cell captive to address one specific risk area, whether that's medical liability or cyber security. As they witness the approach's efficacy, they'll often transition to their own single-parent captive or add separate cells for other risks," the article stated.
Everlong Captive Health Insurance is one of those such captives that offer cell captives in the specified area of health care coverage.
"Everlong Captive is for you if you are tired of going about paying the same high premiums, only for your employees to not get the coverage they need. With Everlong Captive, they have recreated the way we look at health insurance and made it so the power is in the employer's hands as opposed to a separate traditional insurance company. With making this switch, small business owners and brokers are able to stabilize this aspect of their company with an affordable, transparent health care plan that is self-funded," Truax said in a company podcast.
According to the article, while economic uncertainty and other challenges seen in 2022 may lead to greater risk and volatility in the insurance markets, captive insurance continues to offer alternative solutions to businesses and expect to see continued growth as a result.