Stop-Loss Coalition Development

As brokers and consultants spend more time on stop-loss placements, interest in stop-loss coalition development has also grown among agencies of varying sizes.

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The introduction of the Affordable Care Act (ACA) brought with it an increased interest in self-funding and therefore stop-loss insurance. As brokers and consultants spend more time on stop-loss placements, interest in stop-loss coalition development has also grown among agencies of varying sizes. Whether you call it a preferred partnership, stop-loss panel or block consolidation, these arrangements consolidate carrier/MGU relationships and when executed efficiently, can bring a variety of benefits:

  • Favorable underwriting policy provisions based on a critical mass of business.
  • Better terms with preferred stop-loss partners than might be available through negotiation with different carriers on each client independently.
  • Better service agreements or performance guarantees.
  • Preferred stop-loss partnerships designed to offer the most flexibility and meet specific client needs.
  • Differentiation, allowing brokers to market their advantage over those who can’t offer the same consolidation benefits – which can lead to a better closing ratio.

Consolidating your stop-loss business with a few providers can make life easier and more rewarding. It can also provide benefit professionals with more leverage with their stop-loss partners. Working with Beacon Risk Strategies allows you to gain from their experience and expertise in setting up coalition partnerships and enables you to bring something unique to the table when discussing stop-loss with your clients.

When choosing a block consolidation partner, we are an ideal organization to consider.