by Dale Campbell
ClearBenefits.ca | Group Benefits Provider
Shared Risk – experience based plans
Have you ever wondered why rates for experience-based benefits plans can fluctuate so significantly each year? It’s because you are sharing risk with the insurance company through premiums that are adjusted each year based partly on your:
Reality
Every company with a benefits plan has staff, and the common denominator is that life happens. Staff turnover, sick days, health challenges, illness, accidents, dental work, prescriptions, glasses etc. will happen. If you have a traditional, experience-based benefits plan, you have no way of knowing how much your staff will claim in any given year and what the effect will be on rates next year.
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