Not All Captives Are Created Equal
In a market defined by rising health care costs and a hardening stop-loss market, the right captive structure matters more than ever.
A Potential Edge — But Not a One-Size-Fits-All Solution
Many employers are looking to health captives as a potential competitive edge. But here’s the truth: not every captive is built the same, and not every model will work for every business.
Joining the wrong captive — or staying in one that isn’t performing — can be worse than the alternative. That’s why employers need to evaluate captive options through structure, philosophy, governance, and performance.
Are you experiencing what you bought into?
Are You in the Right Captive?
Performance & Value
- What have your renewals looked like, and how are they determined?
- Have you received timely and transparent reporting?
- Are you getting the distributions you expected?
- Are you rewarded for strong performance, and how is that tracked?
Transparency & Governance
- How are decisions made, and who’s making them?
- Do you know how you’re performing relative to your peers?
- Do you have meaningful input or ownership compared to your previous model?
Structure & Accountability
- How is your captive manager compensated?
- What happens if your broker relationship changes?
- Are you required to use certain programs?
- Are there penalties if you don’t?
Why This Matters in 2026
The stop-loss market has hardened meaningfully, with carriers rebalancing risk and premiums in response to elevated catastrophic claims — particularly in cancer and specialty drugs.
For employers well-suited to a captive structure, this environment makes the stability and cost-control potential of a well-run captive more compelling than it was even a year ago.
Captives should deliver on their promise.
At M3, we believe that starts with full transparency and strategic alignment.
Read the Special Feature