Zurich American Insurance Company has signed an agreement to acquire Special Insurance Services, Inc. (SIS), a Texas-based program manager whose offerings include gap medical and occupational accident insurance products.
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 acquisition of SIS, which is expected to be completed in early 2022, will help expand ZAIC’s ability to deliver solutions 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 for 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 capabilities to develop, underwrite, distribute and administer specialty insurance products for small- and midsize employers.
The firm has been managing programs since 1987 and today provides some level of administrative services to more than 5,000 employers and their employees, with annual premium of approximately $55 million.
“Zurich and SIS share a commitment to listening to the needs of the marketplace and putting customers first,” said SIS President Philip Rearick. “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 for some of the most pressing health challenges that businesses and individuals face today.”