Protect Yourself
How can you Protect Yourself From Shrinking Choices for Small Group Benefit Plans?
Over the last few months, the face of the Canadian insurance marketplace has changed dramatically. Major organizations have 'demutualized', turning themselves into stock companies, some ripe for takeover. Others have already merged, forming one larger company out of two.
It's probably fair to say that these 'new' insurers are taking a hard look how they do business and who their customers are.
The bottom line is more important than ever.
What are the implications for your group benefit plan, especially if you work alone or with a handful of employees?
Increasingly, your company will have to be source of profit for a large insurer to take any interest in you. If your group's claims exceed the break even mark opposite your premium, even briefly, you can see hefty increases in your rates. That assumes you are offered renewal of your coverage. It's usually up to your insurer.
The Chamber Plan is different. In spite of its modest size, it's the largest program in the country for small business covering 19,000 firms. Directed by the Chamber Insurance Corporation of Canada, a non-profit organization of Chamber managers and volunteers, the Chamber plan is run for Chamber people, by Chamber people. Once your firm becomes insured, your plan is guaranteed renewable.
As the industry continues to evolve, we expect bigger insurers to focus on bigger employers. Our commitment is to serve the small business community and what well continue to do.
