Transforming Captive Insurance: Insights from Jonathan Mosse

Introduction

In a recent episode of Commercial Carrier Corner, host Jared Taylor engaged with Jonathan Mosse, a veteran in the health insurance and employee benefits industry, to explore the intricacies of captive insurance. With 35 years of experience, Jonathan shared his journey from building a successful insurance agency to becoming a sought-after consultant post-retirement.

From Broker to Consultant

Jonathan Mosse’s career began as a broker, where he, along with his father and brother, established an insurance agency near Boston, focusing exclusively on employee benefits. For three decades, he led the health and welfare practice, eventually retiring in 2019. However, the industry soon called him back, and he now consults on various aspects, including pharmacy benefit management and medical stop-loss captives.

Understanding Captives

Jonathan provided a comprehensive definition of captives, describing them as insurance companies formed to manage specific risks that couldn’t be effectively placed in the open market. Initially, captives were single-parent entities, but over time, they evolved into multiple applications, with group stop-loss captives becoming prominent in the health insurance sector. Jonathan emphasized that captives primarily handle the stop-loss or reinsurance component of a self-insured medical plan.

Challenges of Traditional Captives

Addressing the limitations of traditional captive approaches, Jonathan highlighted that many failed due to aggregating high-risk policies without effective management strategies. He pointed out that merely grouping policies doesn’t mitigate risk unless proactive measures are taken to manage catastrophic losses and improve underwriting results.

Jonathan’s Innovative Approach

Jonathan’s current approach to captives revolves around a unified strategy where all members of the captive adhere to the same cost containment and risk management programs. He stressed the importance of a collaborative mindset among members, ensuring they all act in the best interest of the captive. By managing risk from the first dollar, Jonathan’s method aims to optimize outcomes for all stakeholders involved.

Conclusion

Jonathan Mosse’s insights shed light on the evolution and future of captives in the insurance industry. His “all for one, one for all” philosophy represents a significant shift towards a more collaborative and effective risk management approach.