Fully insured
The carrier bears the claims risk in exchange for premium.
Under fully insured funding you pay a premium and the insurer pays claims, keeping any surplus in a good year and absorbing the loss in a bad one. Budgeting is simple and volatility sits with the carrier.
It is the default arrangement for most Canadian employers and the appropriate one for the large majority of small and mid-sized groups.
What this means for a BC plan
Nearly every BC group under about a hundred lives should be fully insured. The saving available from self-funding at that size rarely compensates for the exposure in a bad claims year.
Related terms
Where this comes up
Fully insured vs ASO · All glossary terms · Ask an advisor directly
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