Sat, Feb 13, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Survey finds cost of health insurance for hedge fund managers rising at slower rate

Tuesday, February 28, 2012
The cost of providing health care insurance to the hedge fund community is rising at a slower rate for the first time in years, according to SKCG Group’s Annual Hedge Fund Health Insurance Survey. According to SKCG’s analysis, insurance carriers raised their rates between 2% and 8%, on average, for hedge fund managers and their employees in 2011. This represents a marked improvement from the 6% to 18% rate hikes that were reported in last year’s survey of 2010 rates.

The survey, conducted by SKCG Group, the Risk Management and Employee Benefits Advisor to some of the world’s largest hedge funds and one of the 15 largest insurance brokerages in the U.S., is based on the rates provided by insurance carriers to over 150 of its hedge fund clients at the time of policy renewals. While there are a number of factors such as geography or industry that can cause rates in the general population to vary widely, SKCG points out that the rate relief for hedge fund managers stands in contrast to the 9% national average rate increases for health care insurance as reported in a recent survey by the Kaiser Family Foundation.

“The most important factor is demographics,” said Parker. “A lot of hedge fund managers and their employees are roughly between the ages of 23 and 50, and they tend to be fit and lead healthy life styles. This group of people typically costs less to insure and this allows the insurance carriers to become more aggressive in their pricing models,” he added.

At the same time, however, Parker said it is difficult to make a true “apples-to-apples” comparison between last year’s policies and this year’s because, partly due to healthcare reform, many new health insurance packages often have less generous benefits than those in previous years.

“There is a ‘good news, bad news’ aspect to this,” commented Parker. “While the rate relief is welcome, the benefits have been watered down. Co-payments and deductibles are higher and more prescriptions are required to be filled by generic drugs, for instance,” he said.

Parker also cited the increasing tendency of state insurance departments to question or deny aggressive rate hike requests from insurance companies as another factor that could be pushing rates down.

Press Release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Real estate secondaries sole 'bright spot' in 2015, As hedge funds stumble, one firm prepares to buy illiquid stakes[more]

    Real estate secondaries sole 'bright spot' in 2015 From IPE.com: The secondary market for property was the sole “bright spot” over the course of 2015, as hedge fund secondaries saw deals fall by two-thirds, according to a wide-ranging survey of the market. Setter Capital said 2015 saw th

  2. Asia - Hedge fund manager Kyle Bass estimates China's foreign reserves below critical level[more]

    From Nasdaq.com: Investor Kyle Bass stepped up his attack on China's currency, arguing in an investor letter distributed Wednesday that the second-largest economy's foreign reserves are "already below a critical level." The comments mark the latest effort by hedge funds and other investors to raise

  3. Investing - Some hedge funds want to make subprime auto loans next big short, 11 hedge funds that are “all in” on the FANG stocks, Hedge funds short London luxury homes, Cynet raises $7 million from U.S. hedge fund[more]

    Some hedge funds want to make subprime auto loans next big short From Bloomberg.com: A group of hedge funds, convinced they have found the next Big Short, are looking to bet against bonds backed by subprime auto loans. Good luck finding a bank willing to do the trade. Money manage

  4. Investing - Hedge funds see selloff in European bank stocks as buying opportunity[more]

    From WSJ.com: The massive selloff in European bank stocks and bonds is overdone and presents a “phenomenal” buying opportunity, according to some of Europe’s top hedge-fund managers. Despite a 28% slump in European bank stocks this year, including a 38% fall in Deutsche Bank AG and a 34% drop in Soc

  5. Legal - Carlyle accused of fraud by ex-employee, Hedge funds win CDS breach of contract suit against Deutsche Bank, Hedge fund asks for OK on $27.5m Goldman CDO deal, SFO examines Barclays hedge fund profits[more]

    Carlyle accused of fraud by ex-employee From AI-CIO.com: A former portfolio manager claims he was fired for blowing the whistle on “crazy” and “irresponsible” investments. Carlyle Group has been sued by a former portfolio manager for one of its hedge funds, who accused the firm of “knowi