Risk-Sharing
Below is the Membership breakdown by type of entity:
2014 Year End Report to the Membership We have just completed another successful year within the SDML Workers’ Compensation Fund. It has become tradition to share the year end numbers with our Membership for the past year. Membership Growth: The growth in public entities that purchase their work comp coverage from the SDML Workers’ Compensation Fund has been phenomenal. Below is a history of the Membership numbers from the very beginning of the SDML Workers’ Compensation Fund. Year Members 1987 The Fund’s 1st Year 57 1995 Insurance Benefits 1st Year as Administrator 188 2000 209 2005 290 2010 362 2013 398 2014 405
2015 Net Estimated Numbers Contributions Cities 220 $3,286,543 Counties 66 (All Counties in SD) $3,068,630 Townships 12 $12,623 Fire Districts 27 $71,645 Conservation Districts 49 $51,665 Irrigation Districts 1 $11,247 Sanitary Districts 4 $12,448 Solid Waste Districts 2 $5,970 Boards & Misc. 13 $73,781 Ambulance Districts 10 $71,390 Total: 405 $6,665,942 Claims Information: 2000 2005 2010 2013 2014
847 Claims 883 Claims 1,011 Claims 932 Claims 1,013 Claims
$2,073,250 Incurred Value $3,461,306 Incurred Value $2,988,788 Incurred Value $3,771,522 Incurred Value $2,500,298 Incurred Value
There has been a 93% increase in the number of Members since Year 2000 but claims activity has remained relatively stable in both the number of claims (Frequency) and the dollar cost of those claims (Severity). We believe this has been consistent for several reasons; the solid underwriting practices that Insurance Benefits uses when adding new members, the claims management and use of rehab nurses that Claims Associates provides, and the active loss control programs that are provided by Safety Benefits. The SDML Workers’ Compensation Fund uses an actuarial firm, AON Risk Solutions, to evaluate the claims, the expenses, and to determine the rates that we need to charge you, our Members, on an annual basis. The actuarial firm also looks at each individual member’s claims experience and determines each Member’s Fund Modifier. The 2015 rates have remained the same. Also, Renewal Credits, Loss Control Credits and Equity Credits are given to each Member which reduces the amount you pay for your workers’ compensation coverage and puts money back into your budget. The SDML Workers’ Compensation Fund purchases Excess “Reinsurance” to protect your financial assets. This is purchased through Safety National Casualty Corporation. SNCC carries an A.M. Best Rating of an A+ (Superior), for it’s financial strength. However, with the success of the Fund comes along related expenses and changes in our Reinsurance program. This year, the “selfinsured retention” (the amount that the SDML Workers’ Compensation Fund pays for each claim prior to
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SOUTH DAKOTA MUNICIPALITIES
