While Aegle offers a high-probability of savings, it’s similar to self-funding in that there’s a low-probability risk of loss. If loss ratios exceed approximately 120%, traditional stop-loss may be more cost-effective. However, such a high ratio is uncommon over extended periods.
Our capital markets partnerships are diverse, involving asset managers like hedge funds, private equity funds, and banks. We compile quotes into a portfolio and negotiate the best possible price, ensuring that any savings benefit our clients directly.
Self-insured groups with:
- Over 200 employees
- Good creditworthiness (equivalent to S&P BB rating or above)
- Willingness to involve CFO in the decision-making process
If a group continues with Aegle, the financing rolls over. However, if they revert to traditional stop-loss, any balance must be cleared.
We’ve harnessed and refined strategies used by major insurers for fully-funded entities, adapting these effective methods for a broader middle-market audience.
Not entirely. Versions of our strategy have been employed since around 2010 by entities like Aetna for certain fully-funded health risks. We’ve made these techniques accessible to a wider audience.
Likely, yes. Although there’s an interpretation pending guidance from the Department of Labor, we currently advise full reporting.
Transparently, we match commissions dollar-for-dollar.
Think of it as a dedicated credit line. After financial underwriting, groups can access this line for high-cost claims and have 5 years for repayment without any prepayment penalties. Interest rates are pre-determined based on group financials, ensuring clarity on all repayment terms.
No. Groups are free to repay as they see fit.
It’s entirely optional. While the credit line is available, groups can choose whether or not to utilize it based on their financial strategy.
Rates are determined at the policy year’s onset, based on the group’s financial standing. These rates are consistent for any financing drawn during that year.
We have a standard term of 5 years with self-amortizing payments. While this is our current model, we’re exploring more flexible terms for future cycles.
