Beneplan administers a cooperative, and its clients become the members of this cooperative. With Beneplan’s coverage, members receive refunds on any unclaimed premiums. In other words, if a company pays more to Beneplan in premiums than its employees claim in benefits, the company will be issued a refund. On the other hand, if a company’s claims exceed its premiums, the company is not penalized, as reserves of the cooperative cover the deficit. In subsequent years, Beneplan adjusts the premiums according to the company’s results, so that rates are fair for all cooperative members.
The cooperative business model is unique, and so far, is not used for insurance anywhere else in Canada.
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