1. A Captive Insurance Company
created by and for
Connecticut Towns and Schools
CCIA ANNUAL COLLABORATIVE
May 21, 2019

2. What is CT PRIME?
An association sponsored, non-profit, non-stock specialty insurance company in CT that launched July 1, 2016
Comprised of “members,” with by-laws created by a working group of towns and schools, all with equal voting power
First municipal captive in Connecticut governed by a member-elected Board of Directors completing its 3rd year
Managed by a team of experienced insurance professionals, under the day-to-day oversight of CREC, as a contracted service provider to the CT PRIME Board

3. Why was CT PRIME created?
To stabilize cost and coverage terms of medical stop loss insurance for self-insured towns and schools
To assist members in ensuring that health insurance administrators accurately administer benefit plans (CT PRIME has found errors costing towns $$$)
To collaborate and share ideas and resources to develop other long term benefit-cost control strategies
To provide an opportunity for shared services in CT (no county government)

4. Goals of CT PRIME
To reduce costs and keep employees healthy. Other CT PRIME programs:
Employee Assistance Program – 24-hours-a-day free counseling and other services
Medical claims and dependent eligibility audits – RFP issued
Medicare Advantage Program - plan to provide relief from OPEB and GASB responsibilities for those members who pay all or a significant portion of their 65+ retirees’ medical premiums

5. Challenges of a municipal captive
Requires review, oversight and participation by members with a knowledge of health care programs
Requires regular actuarial projection updates
Requires discussions about unpredictable catastrophic claims
Transplants, neonatal intensive care, specialty drugs
Requires discussions about renewal premiums based on group experience vs. employer’s actual loss experience
Requires commitment to stay together for long term goals rather than shopping annually

6. Benefits of a municipal captive
Allows members to obtain MSL insurance as a group to ensure economies of scale
Allows members to share expertise, best practices and trends
Provides a review of claims by the MSL carrier to ensure compliance with underlying health care plans
Provides support to members to procure additional health and wellness programs such as Employee Assistance Programs
Provides stable pricing and predictability over the long term (claims will always be what the claims are for members)

7. Key savings
CT PRIME this year issued $8 million in premiums for 12 member towns and schools and close to 10,000 employees
CT PRIME has historically beat industry stop loss trend
Carrier retention percentages included in the pricing for traditional stop loss policies are between 32-36% compared to 26-30% for stop loss captive
– CT PRIME going out to market to ensure the best financial rate and policy terms

8. Future plans for CT PRIME
Increase interest in towns and schools working together to improve efficiencies
Explore ways to increase preventative care to reduce health care costs
Expand the number of medical stop loss members
Allow the addition of new captive cells

9. Future for CT municipal captives?
CT PRIME, Inc. – first municipal captive in CT established in 2016
Connecticut Foundation Solutions Indemnity Company, Inc. (“CFSIC”) - chartered and licensed as a captive insurer in 2019 to assist the State of CT with the fair and equitable adjustment of homeowner claims resulting from the pyrrhotite-affected home foundations natural disaster. The State of CT allocated $5 million to reimburse homeowners for the cost of testing their concrete foundation.
Special Education Model Task Force Cooperative Model – Task force established by the CT Legislature in 2018 to analyze the potential to establish a captive insurance company to finance special education costs in Connecticut.

10. A Captive Insurance Company
Created by and for
Connecticut Towns and Schools
CCIA ANNUAL COLLABORATIVE
May 21, 2019