Insights from the Health Special Risk team at Arrowhead Programs
Many Americans don’t have the financial stability to cover unexpected expenses. According to a 2024 Federal Reserve survey, 37% of Americans couldn’t cover a $400 emergency expense without borrowing from family, using a credit card or selling assets. If a family member is injured at camp or a volunteer gets hurt during a sporting event, the resulting medical bills can quickly become a financial hardship.
That’s where accident and health (A&H) coverage — and Health Special Risk — step in.
Related: Mitigating risk in sports and entertainment
Why A&H coverage is more relevant than ever
As medical costs climb and activities involving participants and volunteers expand, so do the expectations to protect the people involved. This is why A&H insurance is increasingly being built into event registrations or offered through organizations. For agents and brokers, it’s a smart way to add value, whether expanding existing accounts or tapping into new ones.
“In our years of serving the A&H market segment, we’ve found that agents and brokers have a wide range of customers who need this product,” says Brandon Schall, president of Health Special Risk (HSR), part of Arrowhead Programs. “Our book is diverse, starting with a $300 minimum premium for things like church groups, camps and civic groups. However, we also insure Team USA, Scouting America and every size of group in between.”
Because HSR knows these markets well, agents who specialize in niche areas like daycare centers or camps often rely on Schall’s team for guidance on binding and onboarding accounts.
“The market is constantly evolving, and agents appreciate that we can keep them informed on policy and underwriting developments,” adds Emily Frank, underwriting leader at HSR. “As a program administrator, we provide both underwriting and claims administration services, so agents can look to us as a one-stop resource.”
Related: Proactive risk management is key to auto liability stability
How A&H insurance helps agents address hidden gaps
The post-COVID boom in events and activities has spurred more organizations to offer additional programs. However, many are unaware of the coverage gaps these new programs may create. Often, the event organizer’s liability insurance carrier requires accident coverage for participants as well, which can insulate and lower the liability policy’s overall exposure.
The logic is that if an injured participant’s medical bills are covered under the A&H policy, they’re less likely to sue the event organizer. It’s a key conversation point for agents working with clients who run events. Helping them understand the value of excess medical coverage could be the difference between a well-protected program and one with costly vulnerabilities.
Where empathy meets efficiency
HSR serves as a third-party administrator for 16 A&H insurance carriers, offering agents and policyholders a trusted ally in both underwriting and claims handling. Their approach to claims is grounded in cost efficiency and backed by a strong sense of empathy for the claimant experience.
“We’ve developed a well-respected, efficient claims capability by providing timely reimbursements,” says Schall. “We also use a proprietary repricing methodology to adjudicate claims when no other primary insurance coverage exists. This helps lower the loss ratio, ultimately resulting in lower premiums for the policyholder.”
HSR also works closely with agents to craft policies tailored to the needs of individual clients. In the K-12 Student Accident segment, agents can offer several types of coverage, including mandatory, catastrophic and voluntary. “A school district may have a $25,000 deductible for their $5 million catastrophic A&H policy,” says Frank. “They then buy a $25,000 base policy to cover the deductible, with HSR facilitating the base and excess coverage.”
That operational strength is paired with a deep understanding of the human side of A&H insurance. “One of our core values as an organization is empathy — remembering there’s a claimant on the other side of the computer screen,” Schall says. “If they are confused, we stand ready and available to talk them through the claims process. An educated claimant is good for everyone — the claimant, policyholder, agent, carrier and us, as the claims payor, all benefit when the claimant understands the claims process.”
By combining tailored coverage options with a claims process grounded in empathy and efficiency, HSR helps agents protect their clients with confidence — from the first conversation to the final claim.
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This material has been prepared for general informational purposes only, is intended to apply generally rather than to any specific company and presumes appropriate discretion will be exercised regarding any particular situation.
