Group Benefits, why pooling? Do you prefer a plan that is easier to budget for? Then a Pooled Benefits program may be just what your business needs.
Pooled Benefits Plans spread claims risk across many clients. Effectively transferring risk to a pool, delivering what clients often say they thought they were buying in the first place.
Group benefits, why pooling? Consider a pooled benefits program if you are looking for:
- Stable rates
- Predictable budgeting forecasting
In order for a benefits plan to work best, groups of 3 – 50+ need a wider spread of risk. Why? In order to stabilize the claims fluctuations that occur from year to year. A pooled plan can be the ideal approach for clients looking for the best opportunity for stable and predictable rates.
Traditional, experience-based plans most commonly take a shared risk approach between the insurer and the client. Resulting in clients’ annual rate adjustments being based on a variety of factors. Including prior years’ claims and usage, which can make budgeting unpredictable.
This method can be appealing to clients that are more risk-tolerant and have the willingness and financial resources to be able to absorb the rate volatility these types of plans can experience.
Which Approach is Best? It comes down to the amount of risk tolerance and financial ability the client has. If a client just wants to provide an affordable benefits plan, prefers predictable business expenses, and is not necessarily interested in dealing with the many variables that determine their rates from year to year, then a pooled benefits program may be the right long-term solution for your client.
ClearBenefits.ca is a Group Benefits Provider specializing in Pooled Benefits Programs. We develop, distribute, manage, and service pooled Group Benefits programs.
Each of our 3 Pooled Group Benefits programs features 5 options that can meet the needs of almost any small to medium size business with 3 – 50+ staff looking for affordable, traditional-style, or contemporary coverage.