Xchange Benefits LLC, a managing general underwriter owned by Ambac Financial Group, Inc. (NYSE: AMBC), today announced it has signed a program manager agreement with Markel Service, Incorporated. 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.
“We are honored to be the only company writing stop loss insurance for Markel,” Peter McGuire, CEO of Xchange, said. “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.”
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.
“Part of the Markel Style is to be a market leader and have a zealous pursuit of excellence,” said Jeff Lamb, Executive Director, Program and Alliances. “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.”
About Xchange Benefits
Founded in 2010, Xchange Benefits, LLC is a diverse group of business units focused on the global insurance and reinsurance industry. Led by a team who have industry leading experience, Xchange Benefits underwrites, consults, creates products, creates retail distribution, structures risk, transacts reinsurance, advises on capital deployment and most importantly, listens to its clients. Xchange Benefits is headquartered in Armonk, N.Y., and has an office in Indianapolis.
For more information, visit Xchange Benefits on the web at www.xbllc.com.
About Markel
Markel is a diverse financial holding company serving a variety of niche markets. The company's principal business markets and underwrites specialty insurance products. In each of the Company's businesses, it seeks to provide quality products and excellent customer service so that it can be a market leader. The financial goals of the company are to earn consistent underwriting and operating profits and superior investment returns to build shareholder value. Coverage is underwritten by Markel Insurance Company. Markel® is a registered trademark of the Markel Corporation. Visit Markel on the web at markel.com.
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Contacts
Ambac
Kate Smith
Director, Corporate Communications
ksmith@ambac.com
Markel
Chelsea Rarrick
Associate Director, External Communications
Chelsea.rarrick@markel.com
