MHEC programs respond to challenges that require persistent interstate cooperation.
When members identify the need for solutions to challenges in postsecondary education, MHEC explores whether a long-term, regional approach is beneficial. Programs born from this process offer enrolling institutions opportunities to save money, improve efficiency, and better serve their stakeholders.
Captive Insurance
Captive insurance is an insurance company created and wholly owned by a parent company or group to insure its own risks. Captive insurance can help companies and organizations control their insurance costs by providing customized coverage, filing coverage gaps, improving cash flow, and reducing expense.
MHEC has had its own solely owned captive, Stone Arch Insurance Company, since 2021. To respond to the increased demand for captive insurance options in higher education, MHEC is developing a sponsored cell captive program with the intention of renting cells to higher education institutions at below-market rates. This would allow colleges and universities to ensure a layer of risk and experience the financial and risk management benefits of a captive, without the work and expense of founding and incorporating a captive insurance company on their own.
In a sponsored cell captive structure, cells are kept separate from one another and there is no shared risk between cells. Institutions could ensure multiple lines of coverage in their cell if desired, including employee benefits, worker’s compensation, stop-loss, property, casualty, and liability.
MHEC’s captive can help institutions manage trends in insurance, such as:
- Rising premiums
- Stricter underwriting standards
- Increase in liability premiums and claims
- Market consolidation
- Coverage gaps for high-risk areas like Traumatic Brain Injury and Sexual Molestation
Master Property Program
MHEC’s Master Property Program concluded on July 1, 2023. For former insured institutions, claims management and ongoing support provided by MHEC and the Marsh team will continue until the MPP fully winds down. To request a MPP Property Risk Control or Loss Run Report, please contact Maureen Biehl, Marsh, at maureen.w.biehl@marsh.com or (317) 260-1277.
