Unum to begin offering stop-loss coverage in 2018

Unum Corp., which expanded its benefits line into dental and vision insurance this year, will add stop-loss coverage for self-insured employers next year as the Chattanooga-based insurance giant seeks to grow the business after booking record profits last year.

“Entry into this market broadens the scope of financial protection Unum provides and increases the value we bring to employers,” said Rich Williams, senior vice president and general manager of Unum’s new Stop Loss business.

Unum announced Wednesday that in 2018 it will enter the $14 billiona-year market for stop loss coverage for health coverage by self-insured employers.

Self-funded health insurance plans can save employers on premiums, but such coverage shifts the financial risk for all medical claims to the employer. To limit such risks, stop loss plans offer a type of re-insurance to cap the amount an employer must pay. The market for stop loss insurance has been growing at about a 15 percent annual pace as large businesses and cooperatives look for ways to trim rising health care costs.

Unum will begin selling the new stop loss policies in late summer, with effective dates of Jan. 1, 2018. The product will be available nationwide once the rollout is complete.

“This is an important component of our growth strategy,” Unum U.S. President and CEO Mike Simonds said in a statement. “We’re capitalizing on our strengths in distribution, scale, and risk management to enter this attractive market.”

The company has named Rich Williams, who is based at Unum’s Colonial Life headquarters in Columbia, S.C., as general manager of the new stop loss business division.

Unum, which bills itself as a leading benefits provider, launched Unum Dental and Vision earlier this year through the acquisition of Starmount Life in Baton Rouge, La.

Unum’s stock closed Wednesday down 94 cents per share, or more than 2 percent, to close at $45.21 per share after announcing the new business line. But the company’s stock is still up by 39.6 percent from a year ago.

Contact Dave Flessner at dflessner@timesfree press.com or at 757-6340.