Third party administrator, Cypress Benefit Administrators, has launched CypressCap, a group captive insurance programme for employers with at least 50 employees.
Cypress Benefit Administrators hope that CypressCap will help alleviate spiraling healthcare costs, as captive insurance expands to small and mid-size companies in the public and private sectors.
CypressCap is structured as a group captive, offering companies an alternative risk transfer vehicle. Members can benefit from underwriting profit, investment income and tax advantages.
Tom Doney, president and co-founder of Cypress, said: “With healthcare rates escalating so significantly from year to year and no way to predict if or when they will stabilise, employers are really feeling the pressure. They are being much more proactive about implementing effective cost containment measures.”
“In many cases, small and mid-size companies have traditionally experienced limited access to claims data, giving them less chance to implement programs or incentives that encourage employee wellness and minimize claims.”