Zurich American Insurance Company (ZAIC) has signed an agreement to acquire Special Insurance Services, Inc. (SIS), a Texas-based program manager with offerings including gap medical and occupational accident insurance products. The acquisition will expand ZAIC’s supplemental health offerings.
ZAIC’s accident and health products for employers and other groups include voluntary benefits, travel insurance and assistance, gap medical, medical stop-loss, occupational accident and student accident insurance. The company’s acquisition of SIS, slated for completion early next year, will bolster its capabilities in gap medical, occupational accident and primary employer indemnity insurance.
“As medical costs continue to increase, employers are seeking solutions that enable migration to higher-deductible major medical plans while ensuring healthcare affordability for workers,” said David Fike, head of life, accident and health at ZAIC. “Gap medical is gaining popularity because it can help employees cover their deductibles and coinsurance, reducing out-of-pocket expenses. Through the acquisition of SIS, ZAIC can build our capacity to deliver high-quality supplemental health products like this – products that businesses and workers need, desire and deserve.”
SIS has the capability to develop, underwrite, distribute and administer specialty insurance products for small and medium-sized employers. It has been managing programs since 1987, and currently provides administrative services to more than 5,000 employers and their employees, with annual premiums of approximately $55 million.
“Zurich and SIS share a commitment to listening to the needs of the marketplace and putting customers first,” said Philip Rearick, president of SIS. “That’s one reason our talented team at SIS looks forward to joining the Zurich family and amplifying our positive impact. Together, we will help solve some of the most pressing health challenges that businesses and individuals face today.”