Services > Insurance Products

Stratum's overall business strategy in the area of insurance supports the long-term objective of adding value to Shareholders and Clients by leveraging the consolidated purchasing power, reducing exposure by implementing standardized risk management programs, and developing a vehicle for shared risk and self insurance among Shareholders and key partners through a captive insurance company.

Stratum began by replacing commission brokerage relationships with consulting relationships, thereby significantly reducing costs and aligning the incentives between Stratum and its broker/consultant. Utilizing this methodology, Stratum negotiated significantly improved insurance contract language and achieved pricing concessions to acquire Long-Term Disability, Group Life, AD&D, Professional Liability, Employee Health Stop/Loss, Directors and Officers, Employment Liability, and Errors and Omissions insurance coverages.

In 2003, Stratum formed Stratum Insurance Company, a Captive Insurance Company, for the purpose of gaining long-term control over the wide fluctuations in professional liability insurance premiums. In the future, Long-Term Disability and Group Life will likely be partially self insured through Stratum Insurance Company.