A large financial services firm switched to BeneRe for voluntary benefits, which helped it gain transparency and get dividends to reinvest in its employees.

Key Takeaways

  • BeneRe helped a financial services firm with 25,000 employees see how a group captive model for voluntary benefits would help both the employer and employees
  • The firm saw increased enrollment and hundreds of thousands of dollars in dividends to reinvest into its employee benefits program
  • Transparency makes a big difference in the insurance industry and ensures employers know their employees’ dollars are going to deliver benefits for them, not just profits for the insurer

BeneRe is glad to have a successful financial services firm as one of our employer clients. This firm has 25,000 employees, and they’re in their second year with BeneRe. Company leaders quickly saw the no-brainer advantages of going with BeneRe and our group captive model for voluntary benefits, including lower premiums, an easy transition, full transparency, and dividends to reinvest in even better employee benefits in the future.

So, what kind of impact have we made for this client? Here’s more information about this company and how we helped them offer a better voluntary benefits plan.

Why BeneRe?

This large financial services firm owns its own single-parent captive insurance company. These types of insurance companies include coverages like general liability, auto liability and workers’ compensation insurance. However, the firm couldn’t write voluntary benefits into its captive insurance company since they are paid with employee dollars that are deducted from their paychecks.

Business leaders at the firm got word from one of their trusted insurance advisors that there was a more efficient model out there for voluntary benefits — BeneRe. They were open to hearing more about our group captive model that is based on complete transparency. Our team met with their CFO and heads of rewards and benefits to educate them about our program and how it would help.

They immediately saw the benefits of the model and, like many clients we work with, wondered if they were missing something. It simply sounded too good to be true. But, because they had both finance and HR representation in the meeting, company leaders could more easily understand that the math doesn’t lie – the BeneRe model was really that efficient and advantageous, for both employers and employees.

We have found that when both HR and finance departments are involved in discussions with BeneRe, the benefits are clearer. Employees benefit from the lower premiums and the fact that all dividends are reinvested back into their benefits programs. Those dividends aren’t retained by the insurance industry. 

Results for the financial services firm

The purpose of the group captive insurance model is to pool employers together in a mixing bowl. The coverage is deducted from payroll and goes directly to the fully insured carrier, and employers all participate together.

We projected that the financial services firm would see overall savings of 27% across the three categories of voluntary benefits we provide: accident, critical illness, and hospital indemnity. This was on top of the dividends they would receive, which we projected to be 20%. These dividends have now come to fruition in their second year with BeneRe. 

We are now preparing another dividend transfer for the company to reinvest in their employee benefits, and that is tracking around $600,000 for the year. These are significant resources going back into the health and welfare of their employees. The company also saw increased participation in voluntary benefits after making the switch.

The transition was simple and straightforward with BeneRe. Everything was moved over flawlessly, which is emphasized in the surveys our carrier partner sends to our clients. Our teams get five out of five stars each time we send the survey in the areas related to program implementation.

One reason transitions are so easy is because today’s benefits administration systems are more advanced than ever, so the workload is much lighter when switching insurance programs. It’s less disruptive to employees, and the firm was essentially just changing providers and getting a better benefit at a lower cost. It’s a win-win for both employers and employees. Companies don’t have to post any capital to join the program, and they can leave anytime they want to.

This is why BeneRe has a 100% client retention rate since its inception four years ago. With our transparent, efficient program, they get a better plan at a better price, with total transparency about where the dollars go. And on top of that, they get the dividends back, so the industry doesn’t keep them.

The BeneRe model

At the heart of the BeneRe model is maximizing value for employees instead of the insurance industry. We prioritize transparency in our program regarding claims and expenses, so our clients know exactly where the money is going. We don’t proceed unless employees are getting a better plan at a better price. All underwriting gains are reinvested back into employee benefits programs.

These advantages really do speak for themselves. Clients quickly realize how this model can only improve the insurance industry as a whole while they benefit. We find that our employer clients want a better system that actually helps employees, not just the bottom line. With BeneRe, they can prioritize both.

When employees enroll in the program, they’ll receive a check directly to their home if they experience a qualifying event, like a hospital stay, accident, or illness diagnosis. This additional coverage is especially important as deductibles and out-of-pocket maximums continue to increase for employees, no matter the industry or income level.

Ready to learn more about how voluntary benefits can be different for your organization? Get in touch with BeneRe today to learn how our voluntary benefits captive insurance program can work for you.

Post by BeneRe
April 13, 2022