For instance, the employer might like the chance for a return of premium, benefit flexibility, etc.
The group may want to consider joining a captive.
A captive is an insurance company formed and owned by the members of the captive.
The groups that are part of a captive are self-funded and have their own stop-loss amount.
However, collectively there is a layer of claims that the captive contributes to before the reinsurance kicks in.
It’s possible for a captive member to have a bad year but still get some money back if the captive has a good year.