The programme creates a direct relationship between Axial Benefits Group’s healthcare purchasing coalitions and QBE.
The deal will lower costs, increase stability, reduce turnaround time on claims and improve process efficiencies that facilitate employer productivity.
Captive management company Strategic Risk Solutions will provide financial reporting, regulatory compliance and programme management services for the coalition premium funds.
Mick Rodgers, principal, and managing partner, Axial Benefits Group, commented: "This is an exciting step forward for the healthcare purchasing coalitions Axial Benefits Group manages.”
“The direct relationship with QBE affords us a tremendous opportunity to eliminate administrative steps, gain meaningful efficiencies and ultimately, provide our clients with an opportunity for even greater returns."
Steve Gransbury, president of accident and health of QBE added: "Our primary goal was to fully optimise an already high-performing programme by bringing employers, advisers and carriers closer together.”
“We used a collaborative process with feedback from leading advisers and their clients to construct a programme that shares responsibility, risk and success."
In 2016, Axial Benefit's healthcare purchasing coalition returned $3.2 million in surplus assets to coalition members.
According to Axial Benefit, this form of dividend sharing is made possible through a premium pool that the coalition members create by banding together.