US-based diversified insurance company Nationwide has entered a partnership with SL Management Partners to provide businesses with improved medical stop loss insurance solutions.

The partnership comes as more businesses are opting for self-funded employee healthcare plans to reduce costs.

Increasing healthcare costs continue to be a cause of concern in terms of finances amid inflation taking a toll on businesses, said Nationwide.

Under the collaboration, SL Management will act as a managing general underwriter (MGU) for Nationwide to expand its medical stop loss insurance footprint and capabilities.

SL Management will use its underwriting expertise and function as an extension of Nationwide.

SL Management Partners managing director Robert Lang said: “We couldn’t be more excited to introduce our customers and long-term production partners to Nationwide.

“We have been incredibly impressed with their professionalism, capabilities, and industry knowledge. Highly rated stop loss carriers with strong financials and the desire to grow their client base are incredibly important in the current environment.”

Recently, SL Management purchased American Fidelity Assurance Company’s direct stop loss unit.

Nationwide vice-president and chief speciality officer Syed Rizvi said: “New MGU relationships like those with SL Management provide additional access to the producers serving mid-sized employers that are increasingly adding self-funding and medical stop loss insurance.”

Nationwide currently provides various medical stop loss solutions and its offerings feature traditional self-funding, level-funding and group captives, among others.