A nationwide retailer sought a higher value, more transparent approach to supplemental benefits – one that improved affordability for frontline workers while delivering clearer financial accountability. BeneRe introduced a modern captive model solution designed to bring greater value to every premium dollar.
Key Takeaways
- The organization supports 40,000+ hourly employees across 13,000+ locations nationwide.
- Rising premiums and carrier pricing that lacked transparency reduced confidence in traditional voluntary benefits.
- Hourly employees were especially sensitive to premium fluctuations and unclear plan value.
- BeneRe proposed an established, proven, multi-employer group captive program with richer plan designs and lower projected costs.
- Accident insurance coverage increased by 104% for fractures and 97% for common dislocations, providing more meaningful financial protection for everyday injuries.
- Critical Illness insurance coverage was enhanced with 10+ improvements, Hospital Indemnity insurance coverage admission and confinement benefits doubled, and Mental Health and Alcohol Addiction coverage was added.
- Financial modeling projected approximately $680,000 in first-year dividends to be reinvested in a premium holiday.
For national employers with thousands of locations and a high-turnover, hourly workforce, benefits strategy isn’t just about coverage; it’s about access, affordability, and trust.
For this leading retailer, supplemental benefits had become increasingly difficult to justify. Premiums were rising. Plan value varied across states. And transparency into how dollars were being spent was limited. Leadership wanted a better solution – one aligned with fiduciary responsibility and designed for frontline employees who feel every dollar deducted from a paycheck.
A voluntary benefits challenge.
The retailer’s workforce spans thousands of stores nationwide, with employees working varied schedules and earning hourly wages. In this environment, even modest premium increases can impact participation and perception.
Under a traditional fully insured voluntary benefits structure, plans were delivered through carrier-driven pricing models that offered limited visibility into claims experience, commissions, and administrative load. Employees questioned the value of the coverage, and the organization lacked the data necessary to measure true efficiency.
At the same time, engaging a geographically dispersed workforce presented communication and education challenges. Leadership recognized that if benefits were going to make a meaningful impact, the structure needed to be clearer, more affordable, and easier to explain.
A modern, strategic proposal.
BeneRe conducted a comprehensive evaluation of the retailer’s existing program and presented a transparent group captive alternative designed to improve both value and oversight.
The proposed model introduced richer plan designs across Accident insurance, Critical Illness insurance, and Hospital Indemnity insurance coverage, featuring stronger payouts, expanded covered conditions, and plan structures better aligned with the everyday financial risks faced by hourly workers.
By removing traditional carrier margin and hidden loads, the captive structure projected lower employee premiums – an important improvement for a price-sensitive population.
Just as importantly, the organization would gain full financial transparency. Paid claims, administrative expenses, commissions, and year-over-year trends would all become visible, transforming supplemental benefits from an expense into a transparent, measurable strategy.
BeneRe's modeling also demonstrated how a transparent captive structure could deliver richer employee benefits while creating a pathway for unused premium to be returned to participants rather than absorbed through traditional carrier margins.
“It's the measure of a good fiduciary as a plan sponsor to use these plans to deliver the highest level of benefits to employees and to utilize corporate capital in the most efficient way possible.”
— Head of Benefits Retail Industry
The results: More protection for every premium dollar.
Rather than simply reducing costs, BeneRe's proposed captive model was designed to deliver greater value to employees through stronger benefits, broader protection, and a more efficient use of premium dollars.
Accident coverage was significantly enhanced, including a 104% increase in fracture payouts and a 97% increase for common dislocations, helping employees receive more meaningful financial support following everyday injuries.
Critical Illness coverage was expanded with more than 10 plan enhancements, including doubling payouts for key cardiac conditions, while Hospital Indemnity admission and confinement benefits were also doubled to provide greater protection during hospital stays. Mental Health and Alcohol Addiction benefits were added as part of a more comprehensive approach to employee well-being.
Beyond the richer plan designs, financial modeling projected an estimated $680,000 first-year dividend to be used for a premium holiday, reinforcing the captive model's ability to create value through transparency and efficient plan management rather than traditional carrier margins.
For more than 40,000 hourly employees, these improvements represent meaningful financial protection during unexpected health events, when support matters most.
The BeneRe difference.
By rethinking supplemental benefits through a captive lens, this national retailer positioned itself to move beyond the limitations of the traditional voluntary benefits market.
BeneRe is different in these important ways:
- Transparent pricing and full access to claims-level financial data
- Lower administrative load compared to traditional carriers
- Improved affordability for hourly employees
- A pathway to dividends that can be reinvested in employee wellness
- A scalable solution across thousands of locations nationwide
For this retail organization, modernization isn’t simply about cost savings. It’s about building a benefits strategy that respects employees’ financial realities while honoring fiduciary responsibility.
When you’re ready to explore a more transparent, sustainable approach to supplemental benefits, connect with the team at BeneRe to learn how our group captive model can transform your in-force programs.