Hedge Fund Health Insurance Costs Rise At Slower Rate In 2011

Feb 28 2012 | 9:01am ET

Hedge fund health insurance costs were up in 2011, but not as much as they were in 2010, according to the latest research from the SKCG Group.

Insurance carriers raised their rates for hedge fund managers and their employees between 2% and 8% last year, compared to hikes between 6% and 18% the year before that.

The Annual Hedge Fund Health Insurance Survey is based on the rates provided by insurance carriers to over 150 of the SKCG Group’s hedge fund clients at the time of policy renewals.  While there are a number of factors such as geography or industry that can cause rates in the general population to vary widely, SKCG points out that the rate relief for hedge fund managers stands in contrast to the 9% national average rate increases for health care insurance as reported in a recent survey by the Kaiser Family Foundation.
“The most important factor is demographics,” said the SKCG Group’s David Parker. “A lot of hedge fund managers and their employees are roughly between the ages of 23 and 50, and they tend to be fit and lead healthy life styles. This group of people typically costs less to insure and this allows the insurance carriers to become more aggressive in their pricing models."
SKCG Group is one of the largest privately-held insurance and risk management advisory firms in the United States.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…