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📄 '''Group policy''' is a single [[Definition:Insurance policy | insurance contract]] issued to an organization — most often an employer, trade association, or labor union — that provides [[Definition:Insurance coverage | coverage]] to a defined group of individuals and, in many cases, their dependents. Rather than issuing separate policies to each person, the [[Definition:Insurance carrier | carrier]] delivers one master contract to the sponsoring entity, which acts as the [[Definition:Policyholder | policyholder]], while each covered individual receives a [[Definition:Certificate of insurance | certificate of insurance]] summarizing their benefits. This structure underpins the entire [[Definition:Group benefits | group benefits]] market, spanning [[Definition:Group health plan | health]], [[Definition:Group life insurance | life]], [[Definition:Group disability insurance | disability]], dental, vision, and other employee welfare coverages.

🔧 The master contract spells out the eligibility criteria, benefit levels, [[Definition:Premium | premium]] rates, [[Definition:Exclusion | exclusions]], and administrative responsibilities of both the carrier and the sponsoring organization. Employers or plan sponsors are responsible for tasks like enrolling eligible members, remitting premiums, and distributing certificates — obligations that are increasingly managed through [[Definition:Benefits administration | benefits administration]] platforms. Because the contract sits between the carrier and the organization rather than the individual, [[Definition:Group underwriting | underwriting]] focuses on the characteristics of the group as a whole, including its size, industry, [[Definition:Claims experience | claims experience]], and demographics. Amendments and renewals are negotiated at the plan level, giving [[Definition:Insurance broker | brokers]] and consultants significant influence over carrier selection and plan design.

🌐 The group policy model matters because it enables insurers to achieve [[Definition:Economies of scale | economies of scale]] that would be impossible with individual [[Definition:Underwriting | underwriting]] for every participant. Administration is centralized, [[Definition:Adverse selection | adverse selection]] is mitigated by the employment-based enrollment mechanism, and large groups deliver the statistical credibility needed for accurate pricing. For [[Definition:Insurance carrier | carriers]], winning a large group policy can mean acquiring thousands of covered lives in a single transaction, making it a highly efficient distribution channel. At the same time, the concentrated nature of the business means losing a major account at [[Definition:Renewal | renewal]] can materially impact a carrier's book. These dynamics make group policy management — from initial quoting through ongoing service — a core competency for any insurer competing in the employee benefits space.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Certificate of insurance]]
* [[Definition:Group benefits]]
* [[Definition:Group underwriting]]
* [[Definition:Master policy]]
* [[Definition:Group rate]]
* [[Definition:Group health plan]]
{{Div col end}}

Definition:Group policy - Revision history

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