A captive is an insurance arrangement in which an employer, or a group of employers, owns or participates in its own insurer to fund a defined layer of risk directly, rather than transferring all of that risk to a commercial carrier. Medical stop loss (MSL) group captives specifically have become "the fastest growing segment within employer-sponsored, self-funded health plans," according to Captive Resources' health solutions leadership, and are now accessible to companies with as few as 25 employees through group programs.
The growth is driven directly by claims severity: million-dollar-plus claims increased, and stop-loss insurer premium volume reached $31.6 billion in 2022, an 13.4% increase from 2017, per an Oliver Wyman analysis. More than 40% of employers are now using or actively considering captives as a benefits financing alternative, per WTW's 2025 Benefit Trends Survey.
A captive gives self-funded employers more control over stop-loss costs and claims data than a fully commercial arrangement, and lets a group of employers share risk on their own terms. Medical stop loss group captives are now the fastest-growing segment within self-funded plans, accessible to companies with as few as 25 employees.
Every term here points to the same gap in healthcare access. See how the CareStation closes it.
Talk to Our Team
.png)
