Many large companies will “self insure” by negotiating deals with insurance companies to isolate their risk pool to their own employees. Since employee demograp

Many large companies will “self insure” by negotiating deals with insurance companies to isolate their risk pool to their own employees. Since employee demographics are relatively homogenous compared to the general population (younger and healthier generally), large companies can offer a “win/win” in partnership with insurance companies by capturing actuarial efficiency through more precise modeling of their risk pool.