Self-Insurance for Groups
Self-Insurance for Groups
The purpose of a risk retention group is to enable a group of purchasers to form a mutual risk-financing organisation, similar to a group captive to assume liability business. Risk Retention Groups became allowable by the passing of the Liability Risk Retention Act in 1986 providing that each group was licensed by at least one state.
Self-Insurance for Groups
A Captive Insurance Company is a corporation formed by a business or a group of affiliated organisations for the purpose of accepting insurance or reinsurance risks in which they have a direct interest. Through ownership profits and control are retained enabling the owner(s) to enhance its (their) business performance.
Self-Insurance for Groups
Not to be confused with Multiple Employer Trusts, which are generally not subject to ERISA legislation, Multiple Employer Welfare Associations, or MEWA's as they are more commonly known, allow smaller employers to band together to obtain more affordable healthcare coverage.
Self-Insurance for Groups
The Advantages and Disadvantages of Group Self-Insurance
Self-Insurance for Groups
Many states permit companies to form groups or "Funds" to self-insure workers compensation. Savings are made through economies of scale in areas such as administration and excess insurance.
