Services > Insurance Products

Stratum's overall business strategy in the area of insurance supports the long-term objective of adding value to Shareholders 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 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, Professional Liability, Directors and Officers, Employment Liability, Errors and Omissions and Life, Accident, Death and Dismemberment insurance coverages.

In 2003, Stratum formed Stratum Insurance Company, SPC, a Captive Insurance Company, for the purpose of gaining long-term control over the wide fluctuations in insurance premiums. The Captive will also provide the multi-specialty physician groups insured through the program the ability to have more control over the claims process. The first coverage provided by the Captive will be Professional Liability Insurance. In the future, Long-Term Disability, Life and other coverages will be considered for placement in the Captive.