Within the insurance industry, there's a persistent myth that bigger is better. That somehow, having more members automatically translates to better results. The reality? Market share and member value often move in opposite directions.

The False Promise of Scale

Many captive managers chase growth at any cost, accepting virtually any group that can fog a mirror. Their pitch is seductive: "Join our program – we have thousands of members and billions in premium!" But here's what they don't tell you: every underperforming group dilutes the value for everyone else.

When a captive accepts groups with poor claims experience or inadequate risk management, existing members pay the price through premiums that subsidize newcomers - creating a hidden tax that compounds with every unsuitable addition.

Our average stop-loss trend since inception is -3.2%. Meanwhile, many larger programs celebrate keeping increases below 7%. This stark difference isn't luck – it's by design.

Consider this risk: A typical 200-life group has a 58% chance of facing an organ transplant claim within five years. In large, undifferentiated programs, these catastrophic risks spread across all members, regardless of their risk profile. Our approach is different. We provide specialized organ transplant coverage that protects members without forcing them to subsidize poor performers.

We achieve these results through fundamental differences in our approach:

Structure & Independence

• Founded by benefits brokers who understand your challenges firsthand
• Focused purely on employee benefits, not a P&C platform adaptation
• Independent operation - not owned by any brokerage, carrier, or private equity firm

Aligned Interests

• Highly selective membership standards that protect performance
• Revenue structure independent of fronting carriers
• Transparent, fee-only compensation model
• Benchmark-specific deductibles tied directly to renewals
• 100% of captive layer surplus returned to members

The Hidden Costs of Size

Large captive programs carry hidden costs that directly impact members:

• Carrier-imposed constraints that limit options
• Hidden relationships that compromise results
• Volume-based compensation that rewards premium increases
• Complex operations that slow decision-making
• One-size-fits-all approaches that ignore individual needs

As programs grow larger, transparency diminishes. Cross-subsidization penalizes high performers, creating a widening gap between what members pay and what they receive. These issues won't show up in market share statistics, but they directly impact your bottom line.

Making the Right Choice

When evaluating captive programs, look beyond size. Ask the critical questions:

• What's their stop-loss trend since inception?
• What's their compensation model?
• Are they truly independent from carriers?
• How selective are they in membership?

"We've worked with other captives where the fronting carrier is also the captive manager... that presents a pretty unfortunate conflict of interest," shares one broker partner. "We've seen that conflict play out in the losses."

The right partner focuses on creating value, not just growing market share. And now you know the difference between a program that works for you and one that works for itself.