ABOUT litchfield underwriters
Limiting Self-Funded Employer Risk, One Policy at a Time

Founded on the principles of stability and integrity, Litchfield Underwriters proprietary underwriting methodologies deliver superior self-funded reinsurance solutions to both commercial clients and Welfare Funds alike.

Union/ Taft-Hartley Origins

In January 2014, we launched our affiliated wholesale medical stop-loss facility, Cay Risk Group. At this time, Welfare Funds were re-visiting medical stop-loss reinsurance to shield against potential liabilities tied to the elimination of the individual lifetime loss limits under the newly implemented Affordable Care Act (ACA). Previously, lifetime limits were capped at $1-2 million per member. Under the ACA, each Welfare Fund member had the potential to result in ‘unlimited’ health claims liabilities. As a result of this substantial change, Cay Risk Group produced it’s first Union/ Taft-Hartely medical stop-loss policy in 2014.

Small- to Mid-sized Employer Segment

As the Union/ Taft-Hartley medical stop-loss segment was expanding exponentially, we began to receive commercial account inquiries to provide stop-loss reinsurance to facilitate their foray into the self-funded health plan market. Demand for a self-funded alternative was being driven by the double-digit fully-insured premium increases that this segment was experiencing under the ACA. Compounding the cost issue was the lack of a skilled health benefits third-party administrator (TPA) with the knowledge to service the small- to mid-sized employer segment. To meet this demand, the company formed CGS Health as a turn-key medical benefits integrator including seamless stop-loss insurance curated for the small- to mid-sized employer segment (50 – 500 employees). The company sold it’s first turnkey self-funded health plan with integrated medical stop-loss insurance in July 2015.

2016 - 2019
Segment Strategy Generates Rapid Growth on Low Loss Ratios

2016 completed our specialization strategy with the development of a tailored medical stop-loss product for the commercial middle-market segment (500+ employees). Three distinct market segments had been targeted with specialized medical stop-loss products to meet their unique needs. Collectively, each segment benefits from the natural hedge afforded by aggregating these non-correlated market segments.
The effect: each segment realizes lower stop-loss premiums and claims liabilities. The result: 50%+ medical stop-loss premium compound annual growth rate (CAGR) from 2016 – 2019.

Dedicated Underwriting Facility

Established a dedicated facility to optimize underwriting and risk sharing for small to middle market commercial accounts as well as Union / TAFT Hartley clients.