Page 43 - ENA

Captive overview

LockSHIP program structure

Each employer is self-funded and receives its own individually underwritten stop loss policy, which is established based on its own risk tolerance.

INDIVIDUAL-EMPLOYER STRUCTURE

Example (employer member A)

• Swiss Re issues a $50,000 stop loss contract to employer member A. • Swiss Re also provides aggregate stop loss for the employer and captive
• Swiss Re reinsures the next $200,000 to the captive. layer, establishing a maximum cost.
• Swiss Re provides stop loss on individual claims above $250,000. • The captive layer is the only risk that is shared, and each employer
prefunds the maximum cost.

Swiss Re speciic Collects the
Employer
Unlimited and aggregate member A Speciic stop loss Stop loss carrier: premium and cedes
Swiss Re
stop loss policy approximately 60%
to the captive.
B
$250,000 Captive buffer
layer ($200,000)
C Reinsures $200,000
excess of speciic
Individual
$50,000 employer
retained risk
LockSHIP
(member-owned
captive)
Swiss Re pays all claims in excess of
$250,000 and provides aggregate stop
loss coverage to the employer and captive.

ENA — Lockton Employee Beneits Practice overview 43 Lockton Companies