There are clear advantages of Group Health Benefits Pooling. Insurance pooling is a practice wherein a group of companies join together to secure better insurance rates and coverage plans by virtue of their increased buying power as a block.
Does a small company of 20 employees receive better rates than a company consisting of 500 employees? Of course not – the larger company is buying in bulk, they are purchasing 500 units of insurance instead of 20 units. In addition, the larger company has more employees and is able to absorb claims/losses at a higher rate relative to the smaller company.
The same can be applied to your home and auto insurance – have you ever heard of discounts for bundling? In general, if you purchase more of any product you will receive better rates/pricing.
Group Health Benefits Pooling results in several advantages over group plans that are not pooled. The advantages of the Olympic group health benefits product over traditional plans are:
- Buying in Bulk – the larger the group the more bargaining power for lower premiums and higher loss ratios.
- Shared Risk – the more people in a group health benefits plan, the less likely to experience highly volatile renewal rates.
- Set Plan Designs – designed to offer core group health benefits for a long-term solution
- Elevated Service Standard – the pool has dedicated resources meaning participating groups and their employees enjoy quicker issue resolution and innovative administrative advantages.
Still not convinced Group Health Benefits Pooling is suitable for your business? No problem! Northern Financial Group also works with major insurance companies such as; Empire Life, Sun Life, Manulife and Great-West Life to offer non-pooled customized plans to suit your business’ needs.