medTRANS Insurance Ltd. has been operating as an affinity group owned insurance company since 2010. In 2015 medTRANS was re-domesticated from Delaware to North Carolina.
Since inception and continuing through September 30, 2016 medTRANS has reinsured medical stop-loss policies fronted by various commercial stop-loss carriers. The fronted insurance program is referred to as the medTRANS 1.0 program, or simply medTRANS 1.0.
The medTRANS business model eliminates the need for a fronting company to issue medical stop-loss policies. In place of a fronting company, protected cells issue stop-loss policies directly to employers. Each cell cedes its risk and premiums to the protected cell captive insurance company (the core), which in turn retrocedes pooled risk and premiums back to the various cells. Although this architecture is already commonplace for captive insurance arrangements that cover property/liability risks, this architecture is novel for covering medical stop-loss risk. Other captive insurance arrangements that insure medical stop-loss risk are sponsored by commercial insurers with their own profit motives, whereas medTRANS steers the profits back to the members.