In the world of employee benefits, few topics generate more confusion than self-funding. For many brokers and employers, the idea feels risky, complicated, and reserved only for massive corporations. But the truth?
Self-funding, when structured correctly, is one of the smartest strategies available today.
At Tactical Reinsurance, we help our partners and clients cut through the noise — and we see firsthand how self-funding, paired with strong stop-loss coverage, creates better outcomes.
Let’s break down the top myths that keep businesses from taking advantage of this opportunity:
- Self-Funding is Only for Big Companies
It’s a common misconception: unless you have thousands of employees, you’re “too small” to self-fund.
Not true.
In reality, groups as small as 50 lives (sometimes even fewer) are finding success with self-funding strategies, especially when supported by customized underwriting and strategic stop-loss protection.
The key isn’t size — it’s structure and risk management.
That’s where Tactical Reinsurance delivers an advantage.
- Self-Funding is Too Risky
All insurance decisions involve risk.
But with self-funding, you control the levers.
Through carefully structured specific and aggregate stop-loss coverage, businesses can protect against catastrophic claims while benefiting from cost transparency and better claims control.
Rather than relying on traditional carriers’ one-size-fits-all pricing models, employers in a self-funded arrangement are empowered to see what’s driving costs — and take action.
Risk is real — but so is the opportunity to manage it tactically.
- Self-Funding is Complicated
It doesn’t have to be.
With the right team — including an experienced reinsurer, a proactive TPA, and a skilled benefits consultant — self-funding becomes a manageable, transparent, and streamlined process.
In fact, many employers find self-funding to be less frustrating than navigating renewal surprises and restrictive plan designs from traditional insurers.
At Tactical Reinsurance, we pride ourselves on making the complex simple.
We focus on helping brokers and employers understand their options, model potential outcomes, and build stop-loss solutions that fit their specific needs.
The Bottom Line
Self-funding isn’t a gamble.
It’s a strategy — one that, when executed thoughtfully, puts employers back in control of their benefits, costs, and outcomes.
If you’re curious about whether a self-funded strategy could work for your clients or your business, Tactical Reinsurance is here to help.
Ready to think differently? Let’s talk.
