HOME COURT STOP LOSS
THE NATION'S FIRST ELECTRONIC STOP LOSS EXCHANGE
Home Court is an innovative stop loss marketplace and exchange that re-invents competitive bidding, restores the balance between buyer and seller in the stop loss markets, and can bring enormous purchasing power to small and mid-size employers. The exchange will attempt to force carriers to reform their underwriting rules, meet the employer’s needs, and bring better long term value to the stop loss purchase.
Traditional shopping and spread-sheeting is not a game that provides advantage to the purchasers. Employers are unable to outsmart the underwriters who take advantage of employers with low risk and abuse employers when they incur claims and need insurance. Advanced data analytics and predictive models have further tilted the game in favor of insurers.
It’s great to be in a low cost preferred risk pool, but can be a disaster for the business when an employer gets rated up severely, lasered, or forced to return to full insurance.
Home Court provides a rational, low cost and efficient marketplace designed to serve employer needs and provide for a sustainable and steady self-funding experience.
HOW DOES IT WORK?
Home Court establishes an employer centric closed marketplace where carefully selected insurers are invited to participant in bidding on employer stop loss. In return for allowing access to employer purchasers to the Home Court marketplace, insurers are asked to change the rules and become cooperative partners in helping employers achieve low cost and other goals of self-funding. Thus, the exchange brings buyers and sellers together in a unique marketplace designed for better outcomes and sustainable stop loss.
The exchange marketplace is built on a platform of specially designed software unlike anything else in the market. The software allows employers to build their own proposals, suggest the prices they want to pay, and perform other useful modeling to help them with the purchase of stop loss. Ultimately, the electronic platform has the potential to integrate closely with bidding insurers and bring further efficiencies to the process.
The insurance markets are characterized by an imbalance in power between buyer and seller. The insurance companies set the rules and dictate all the terms. For an employer, it’s like playing an away game. Home Court attempts to take back control, bring more power to the buyer, and conduct negotiations on equal terms. Let’s play on the employer’s Home Court for a change.