employee benefit captive insurance awardWhile the use of captives to fund risk has grown exponentially among companies of all sizes for risks of all types, one area that is exploding in popularity is employee benefits.

You may already know that U.S. based employers can fund non-ERISA employee benefits in a captive, but did you know that ERISA-covered benefits can be written into a captive as well?

In fact, the U.S. Department of Labor (DOL) has been working hard to make the approval process much easier for an employer to secure a green light to fund group life, accidental death and dismemberment, pensions, disability, retiree medical, etc in a captive.

When done right, benefit captives offer employers significantly greater control over their benefits cost and plan design. They are able to diversify their risk and save on the administrative fees involved in commercial coverage. The chart below shows all employee benefit options, and gives an example of those that a typical employer may wish to fund through a captive.

employee benefit captive opportunities

For over a decade, Spring has been a leader in creating benefits captives. We have been on the frontlines, pushing the model from a niche concept to a mainstream funding option utilized by a number of the world’s largest employers.

Our team was there for the first benefits captive and we continue to play an instrumental role in the formation of the DOL’s prohibited transaction exemption approval process. We have eight patents related to benefit captives and have won countless awards for innovation and leadership in the captive industry.

Concerned about your lack of control over your employee benefit plans and costs? You owe it to your company and employees to take a look at captive funding.

Contact our Benefit Captive team today using the form on this page to get more information and discuss a feasibility study.