Administrative Services Only (ASO)

Commonly referred to as ASO, Administrative Service Only is increasing in popularity as employers continue to search for solutions to offset rising group insurance premiums. Controlling claim expenditures through innovative plan designs deserves serious consideration. However, a major component to the overall premium benefit program is the administration fees.

By sharing the risk of expenditures, employers may share in the plan’s fund surplus.

Can an ASO work for you?

To determine the benefits, careful consideration is to be given to past claim levels as well as a detailed analysis between a fully insured and an ASO program.  A competent consultant can assist to avoid unwanted surprises. High health and drug claims, stop loss and your employees claim patterns need to be evaluated.

A key benefit to an ASO program is the transparency of all charges, including, profit fees, adjudications fees and broker compensation.

Other Advantages to your organizations employee benefit plan:

  • Self-insurance can significantly reduce your employee benefit costs
  • By sharing in the risk, employers can also share in the profits
  • Employers pay for only the benefits they use
  • Increased flexibility occurs as the employer now has full control over benefit design
  • Group benefit pricing is easier to understand resulting in ease of comparison and full disclosure
  • Insurance premiums apply for Life Insurance, Long Term Disability and catastrophic coverage.
  • Smaller employers as well as larger employers are finding ASO as a viable option to their Group Benefit plan.


Service Area: For over 20 years PGI Financial has been helping clients in the Greater Toronto Area including: Milton, Guelph, Hamilton, Mississauga, Vaughan, Markham and downtown Toronto.