Sun, Aug 2, 2015
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. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

  5. Cargill’s Black River Asset to shut down four hedge funds[more]

    Komfie Manalo, Opalesque Asia: Cargill Inc.’s $7.4 billion Black River Asset Management said it was closing four hedge funds with a combined $ 1 billion in assets and start returning investors money over the next several months, various media said. The hedge funds represent 15% of Black River’

 

banner