Xchange Benefits launches medical stop loss program in collaboration with Markel

Xchange Benefits, a managing general underwriter owned by Ambac Financial Group, has signed a program manager agreement with Markel. Under the agreement, Xchange will underwrite medical stop loss coverage on behalf of an insurance affiliate of Markel, as well as handle claims and administer premiums. The collaboration marks Markel’s entry into the stop loss segment.

A critical cost management tool for self-funded health plans, stop loss insurance helps self-insured employers and organizations protect themselves against catastrophic medical and pharmacy claims that exceed predetermined levels. The stop loss segment has grown by more than 10 percent in each of the last four years and surpassed $25 billion in 2020, according to research by financial rating agency AM Best.

The segment’s growth has been driven by the Affordable Care Act, which reshaped the commercial health market and prompted a shift towards self-funded health plans as a means of containing employee benefit costs.

“We are honored to be the only company writing stop loss insurance for Markel. Xchange’s deep expertise in employer stop loss and Markel’s network of producers position us well to take advantage of the growth opportunities that exist in this line of business. We look forward to a long and successful collaboration with Markel.” – Peter McGuire, CEO of Xchange Group .

“Part of the Markel Style is to be a market leader and have a zealous pursuit of excellence. Our collaboration with Xchange Benefits helps establish us in the stop loss marketplace to leverage Xchange’s underwriting and claims expertise along with Markel’s capital and strong distribution partnerships. Markel is excited to work with Peter McGuire and team to build our presence in the medical stop loss industry.” – Jeff Lamb, executive director, Program and Alliances, Markel.