If you started your own business and it has successfully expanded, you finally hire employees to grow your business. But the hiring process includes many steps and aspects that you have to consider as an employer. One of the elements is medical health care and health benefits. Many employers consider self-funded health care, which is a self-insurance arrangement, meaning the employer provides benefits using the company’s funds. With this kind of insurance, underwriting process is essential to protect the business from large claims and excess losses.
All of this sounds already complicated? For this complex processes, there is an easy solution; assigning Managing General Underwriters can make your claim processes and life more comfortable.
Managing General Underwriter -Never heard of it?
Managing general underwriter (MGU) or managing general agent (MGA) is legally a professional or a business entity delegated by an employer or insurance carrier to obtain or negotiate insurance contracts on behalf of them. They are often legally authorized to countersign and navigate the insurance process. Insurance carriers, as well as self-funded companies, can use the services of medical underwriters to protect themselves from massive losses and gain more financial stability.
Managing general underwriters emerged first during the late 19th and early 20th century, mainly in the East Coast. During this time, insurance companies, which were primarily located on the East Coast, strived to expand to the West. But the lack of resources made it tough to open local offices. MGUs provided local resources to the companies to expand their services to the West.
With evolving technology and more accessible information access, the geographical distance was not an issue for insurance carriers anymore. Nevertheless, as the insurance industry became more and more competitive and elaborated, carriers nowadays use medical underwriters to limit cost and risks to increase overall profitability.
What can I gain from assigning an MGU?
Insurance policies can be more sophisticated and larger than necessary, making the process of negotiating for both sides, the insurer and insured individual, needlessly difficult.
Generally, medical underwriting means risk assessment. Every applicant has to provide medical and health information, which underwriters use to evaluate the risk and amount of coverage that may need to be covered in the future.
Besides risk evaluation, claim management is a major part of the services provided. If the claim is larger than a specific amount, the excess, or in other terms, the loss is covered by the carrier. MGUs handle the claim process from start to end to ensure a smooth and quick solution.
In addition to these primary services, medical underwriters can take over several representative and administrative tasks to provide risk assessment and make claim management easier, ensuring security and financial stability.
If you want to learn more about the benefits and services of medical underwriters, contact us and benefit from the expertise of our professional MGUs.