Insurance alternative

An insurance alternative is a financial product or risk management solution that substitutes traditional insurance, such as health sharing ministries or captive insurance programs. Self-insurance lets companies set aside funds to pay claims directly, as seen with large employers like Walmart and Home Depot.

Health sharing plans pool member contributions to pay healthcare costs, evidenced by Medi-Share’s 400,000 US participants in 2023. Peer-to-peer (P2P) insurance groups, such as Lemonade’s Giveback program, redistribute unclaimed premiums among group members annually.

Captive insurance allows businesses to form their own licensed insurer to cover specific risks; over 6,300 US captives were active as of 2023. Microinsurance targets low-income individuals through small, affordable policies, with examples including BIMA and MicroEnsure serving over 60 million globally, according to a report from https://yourinsurance.info.

Risk retention groups (RRGs), numbering over 200 in the US, let similar businesses collectively self-insure against liability claims. Government safety nets like Social Security Disability Insurance act as alternatives for income protection.

Group purchasing arrangements enable associations–such as freelancers’ unions–to negotiate collective coverage at lower rates. Community-based mutual aid societies provide support for medical expenses without formal insurance contracts, as practiced by Amish church aid funds.

Direct primary care memberships charge patients flat monthly fees for unlimited services instead of traditional insurance billing models.