For Cayman Focus 2024, Captive International interviewed Joe Parrilli, Senior Vice President at Captive Resources, about the rise in popularity of Medical Stop Loss group captives. Below is an excerpt from the interview.
There’s no doubt that medical stop-loss (MSL) group captives are on the rise. Whether it’s consultants or brokers, many of the current participants in the MSL space, as well as new ones, are looking for opportunities to create captives for that market.
Five or six years ago, I’d estimate that less than 1 percent of the MSL market was served by group captives. Now, when you look at carriers’ books of business, it could be 5 to 6 percent, and if you look ahead another five years or so, it’s not unrealistic to anticipate 20 to 25 percent of the market space being group captives.
Over the past few years, several factors have driven employers to look at captives. MSL captives have become more well known as a proven vehicle in the market space, much like casualty group captives have. Consultants and brokers are taking notice and understanding that if they’re not bringing this option to their clients, somebody else will.