Unum Corp. announced today it is entering a new market with the launch of Unum Stop Loss.
“Entry into this market broadens the scope of financial protection Unum provides and increases the value we bring to employers,” said Rich Williams, senior vice president and general manager of Unum’s new Stop Loss business.
The Chattanooga-based insurance giant, which expanded into the dental and vision markets this year, plans next year to stop loss coverage for self-insured employers to help cover medical claims that exceed expectations. The coverage also gives employers more flexibility in designing and managing their health plans.
Unum will begin selling policies late summer with effective dates of Jan. 1, 2018. The product will be available nationwide once the rollout is complete.
“This is an important component of our growth strategy,” said Unum US President and CEO Mike Simonds said in a statement today. “We’re capitalizing on our strengths in distribution, scale, and risk management to enter this attractive market.”
With self-funded health insurance plans, employers can save on the cost of premium, taxes, and risk margins, providing improved control over costs. But under such plans, the employer assumes all financial risk for medical claims for its employees.
To help minimize this risk of catastrophic medical claims hat exceed a predetermined amount or deductible or increases in utilizatio, self-insured employers often opt to purchase stop loss insurance (or reinsurance).
Stop loss insurance covers the employer, not employees.
Unum, which bills itself as a leading benefits provider, launched Unum Dental and Vision earlier this year through the acquisition of Starmount Life in Baton Rouge, La.