The four principals, from left to right: Brad Lewis, Beth Madden, Steve Butz, and Greg Edwards.
With over 170 years of combined experience, the Principals and Executive Staff of Certus Management Group have acquired a level of knowledge and expertise which is unsurpassed in the Stop Loss industry. Marketing Specialist Jackie Ebel interviewed the four principals of CMG, Brad Lewis, Beth Madden, Greg Edwards, and Steve Butz to learn more about the company’s history.
1.) Tell me about your background before you started Certus Management Group.
Greg: Following college and an unsuccessful attempt at getting into the record business, I unknowingly began a lengthy career in the stop loss insurance business, a specialty insurance product utilized by employers self-funding their employee health benefits. At that point I knew nothing about the insurance business but that would soon change as a result of working for Jeff Brougher and the Brougher Agency in Greenwood, IN. I began my career in the underwriting department and relatively quickly transitioned to sales, my passion, by opening a sales office in San Diego. From there I spent many years for the various identities of the Brougher organization culminating with VASA Brougher. In 1998 the owner(s) of VASA Brougher sold the company and our situation at that time allowed myself and two of my fellow VASA employees and close friends, Steve Butz and Fred Snively, to seek a new opportunity. That new opportunity came in the form of IMG Stop Loss, Inc., a newly formed subsidiary of the established company International Medical Group (IMG) which we opened in October 1998. Fast forward to mid-2017 and circumstances allowed the executive team of IMG Stop Loss, of which I was a part, to purchase the subsidiary which we named Certus Management Group.
2.) Tell me about starting Certus Management Group. What was your role?
Brad: I had been Executive Vice President of IMG-Stop Loss and was responsible for managing that subsidiary of International Medical Group. One day I was on my way to Chicago to meet a client, and our main contact at Sirius Insurance Group called me and said “Hey, how’d you like to buy IMG-Stop Loss?” Sirius was planning to acquire International Medical Group. They wanted to remain in the stop loss business with us representing them, but for a variety of reasons couldn’t own the stop loss subsidiary. So, I got with Beth, Steve and Greg and said, “we have an opportunity to own the company we’ve built!” We obviously jumped at the chance, and I moved from my former position into the role of CEO/President at that point. In about a month we went from being a subsidiary of a large multi-line organization to being standalone and completely self-sufficient. We had to very quickly figure out all sorts of things infrastructure-wise while still operating the business; IT, phone systems, finance and accounting, new office space, not to mention a name for the new company. We’re pretty proud of the way that was executed, and all came together without our service missing a beat.
3.) What’s the idea behind the name “Certus”?
Steve: We actually spent hours and hours researching to come up with the right name, because while it would be a new name for us, we wanted it to capture the legacy of our collective careers in the stop loss business. We ultimately settled on “Certus” because it’s Latin for “certainty”. We really felt like that’s what we wanted to portray- that our clients can be certain working with us that they’re protected and can be confident in our abilities to be their stop loss resource. It was very important for the name to be just right because we want to send the message that after all these years together, we are still here, that we aren’t going anywhere, and our clients can count on us now more than ever. As owners of the company, we have a personal and certain vested interest in living up to that legacy and delivering on that commitment.
4.) What do you think the biggest thing is that separates Certus from other stop loss protection?
Greg: Unquestionably our experience and expertise sets us apart in the stop loss industry. First, as I said before, we all have been in this business for a long time and, as a result, have seen quite a lot over those years. We see 2000 to 3000 RFP opportunities annually and, thus, are privy to untold amounts of information about those respective benefit plans and the vendors that service them. We have done “deep dives” into countless cost containment components, PBM’s, RBP platforms, and the like. I dare say we have a more extensive library of data relevant to those plan components than anyone else in our industry. And not only do we have the information, our underwriting expertise allows us to use that same information to more accurately price a risk. With regards to sales that sometimes helps us and it sometimes hinders us. From a risk perspective, however, that data and the manner in which it is applied assists in producing a positive underwriting result. That benefits both the stop loss carrier and the self-funded plan itself.
5.) Do you think Certus has a target market, and if so what do you think it is?
Beth: We have the knowledge and flexibility to be many things to many people, so I think our target market is actually pretty diverse. Certus is often associated with stop loss for small group self-funded plans, because we’ve always been in that space and do it very well. But that’s not all we do well. So, I think we need to define our target more broadly and do so in terms not just of group size, but also in terms of any opportunity where we can add an innovative perspective on managing risk. I think it’s important that we make it clear that we are flexible and can create the most efficient coverage for different applications.
6.) What do you see in the future for Certus?
Steve: I see us continuing to leverage our knowledge and experience in differentiating Certus. Again, our history in the stop loss business is unique and will bring value to those involved in the self-funded industry who would view us as a resource in the evaluation of risk. In that light our business development focus leans heavily towards opportunities to collaborate directly with those who are creating strategies to effectively manage and protect a self-funded plan’s most vulnerable high-cost pain points. We want to work where our expertise can shed light on the effect those strategies will have on pricing the risk as they are being developed. I also see us being more involved in development of program-type business and development of products which bring together the interests of every element of the ecosystem: medical providers, employer groups, and employees. We see that as a community-type approach, and as what’s needed to bring actual solutions to the employee benefit market.