Are You Losing Sleep?

Fear of catastrophic claims and the financial challenges they can create may be keeping you – and your clients – up at night. When statistics show claims growing well beyond the $1 million mark with greater frequency, that fear is certainly founded. It’s also a very real fear for me as the CFO of a Stop Loss insurance company. However, I know that data-backed decisions and having the right approach in place for responding to trends can make all the difference.

All the difference to a self-funded group may simply be having the right “partner” in place. After all, the solitary sound of self-funding doesn’t mean those employers have to face high-cost claims alone. At HM Insurance Group (HM), we work day-in-and-day-out to help safeguard the financial health of our policyholders. Our ability to do so is built on the foundation of our own financial strength. Ensuring we have the resources available to take care of our customers is central to my role here.

The world of high-cost claims can be very complex. Stop Loss insurance was developed to help manage the challenge and give self-funded groups an opportunity to transfer the financial risk associated with high-dollar claims to a carrier that can better manage the responsibility. However, it’s essential for the carrier to rate business properly, issue a strong contract, incorporate smart cost containment practices and pay claims quickly and accurately so the burden is not left to the self-funded group.

From where I sit, that means working with all areas of our company to:

• Sustain a stable business model
• Manage risk exposures
• Reserve properly
• Meet our financial commitments
• Preserve our ability to pay claims
• Allocate resources to provide for our policyholders
• Uphold our “A” rating from AM Best
• Foster strong relationships with business partners

These core responsibilities are what give us the ability to meet our obligations. Our commitment to protecting the bottom line of our clients is engrained in our work to maintain our own financial strength – and this should give self-funded clients confidence in choosing protection from HM. After all, we are in the business of paying claims and are proud of our reputation for doing so – quickly and accurately.

There will always be talk of price when doing business, but it’s important to consider a carrier that delivers the right protection at the right price in a policy you can trust. That’s what works to ensure stability. In an industry that’s ever-changing, stability is more essential than ever. And, it helps all of us sleep better.