case Studies
Case Study 1
A billion dollar health plan had been experiencing rapid growth in their marketplace, outpacing the necessary capital to maintain adequate RBC ratios. The health plan reviewed several options, including issuing surplus notes, CD paper, additional debt and a Surplus Relief Reinsurance option thru RSC. Senior management found RSC’s reinsurance option superior to all others but faced resistance from their board, auditors and state regulators. RSC was able to provide documentation from various sources including NAIC, FASB and State Statutes substantiating both the merit and legality of the arrangement. The health plan ultimately received approval from their board, auditors and state regulators resulting in a successful placement of the reinsurance cover.
Case Study 2
Another large Health plan had purchased reinsurance directly with a respected reinsurer. RSC was asked to review their program, including terms of coverage and treaty wording. During the review, RSC determined the Health plan had been paying premiums for reinsurance on members that would be impossible to collect on under the coverage outlined in the treaty. Armed with this data, the carrier went back to the reinsurer and collected a substantial six-figure refund on their premiums.
Case Study 3
A carrier supporting an MGU had not paid profit commissions on their retained line. After appointing RSC as their BOR, RSC negotiated a profit commission payment from the carrier with terms equal to that paid by reinsurers, resulting in additional revenue paid to the MGU.
Case Study 4
A RSC client had just completed the successful placement of their new ownership program. It was time to map out a new business plan with new initiatives that would help reach their goals. RSC organized brainstorming sessions with key participants to develop new initiatives that were ultimately achieved thru collective efforts all participants.
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