best ways to reduce the cost of risk and their workers’ compensation expenses. Common strategies include paying greater attention to risk control and claims handling, in addition to using data analytics to understand where losses are occurring.
years ago for large employers who saw the cost benefits of being self-insured and buying excess workers’ compensation coverage,” he says. “But in recent years, some states have made it more difficult for employers to gain approval for the self-retention levels they want, and some have
“Strong results in workers’ compensation trigger a cycle whereby carriers start to be more competitive and try to capture new market share” Aivaliotis says another way for companies to reduce their costs is via self-insurance plans with excess workers’ compensation coverage. Self-insureds tend to have a high level of risk control and claims management in place because some of the money to pay for claims comes out of their own pockets. “Excess workers’ compensation gained favor
also heightened their collateral requirements. This has driven a shift toward large-deductible workers’ compensation. “The challenge is educating buyers and brokers to the benefits of self-insurance,” he adds. “We need to ensure they’re aware that maximum efficiency is made available through self-insured programs.”
As the market cycle shifts and rates increase, employers might consider taking on more of their own risk via self-insurance. When they do, they need a solid partner who won’t jump on and off the bandwagon in this changeable market. “Rather than focusing on the market cycle,” Aivaliotis says, “[Safety National] analyzes claims data to work out how to price our products efficiently and remain a stable market presence for our insureds.”
Safety National’s approach to providing superior customer service distinguishes us in the marketplace. With a culture built on relationships and over 75 years of expertise to design creative solutions, our customers can trust that we have their specific interests in mind. How can we help? Contact us to learn more about the tremendous value of a Safety National partnership. SafetyNational.com | 888.995.5300
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