The challenge

Our client had maintained a fully insured healthcare arrangement with the same provider for over 20 years. While service levels were acceptable, account management was reactive and alternative funding models had not been considered. The client wanted greater control, improved efficiency, and a benefits structure that better supported long-term planning.

Our approach

Lockton completed a feasibility study, modeling risk and identifying savings in moving to a self-funded arrangement. We tested the market across insured, deductible, and trust-based options, then worked with shortlisted providers to assess experience in managing trusts. A new provider was appointed, and we supported the transition by designing the trust structure, stop-loss protection, and tax protocols.

The impact

• 20% saving on premiums in the first year.

• 10% cost reduction year-on-year.

• Greater control of benefits with stable pricing.

• Stop-loss protection realigned to key risks.

• Trustee board established, with Lockton providing ongoing advice and training.