A new company founded by two former Munich Re Stop Loss executives is selling stop-loss insurance directly to self-insured employers, eliminating brokers from the equation altogether.
Employers that self-fund their medical plans purchase stop-loss coverage – typically through brokers – to protect themselves against catastrophic claims. “The No. 1 consideration in writing business is price and it’s always been price,” says Paul Fallisi, CEO, Reinsurance Direct. “If price is such a significant factor, it’s necessary to come up with a better model that excludes broker commissions, fees and overrides and passes those savings on to the customer.”
