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SELF-INSURED GROUPS. WHAT ARE THEY? WHY JOIN?
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SELF-INSURANCE GROUPS OR SIGs
CCMSI manages 56 self-insured group programs. These programs have many of the outward appearances of traditional insurance companies, however the internal operating philosophy is firmly grounded in self-insurance concepts.
Group programs are generally limited to specific industries, must include similar risks and operate within a single state. Most non-governmental programs are also limited solely to workers' compensation insurance. These programs are designed to provide the benefits of self-insurance to companies without the size or ability to self-insure on an individual basis.
Without self-insured groups, many employers wouldn't be able to either afford or obtain coverages from standard/traditional insurers due to the high-risk exposures. On average, premiums are 15%-20% lower than standard traditional insurance market premiums. They also save employers from rates that are 20% higher when entering a residual market plan. The willingness to commit to safety and return-to-work programs will also help lower the cost of coverage.
- On average, SIG premiums are 15%-20% lower than standard traditional insurance market premiums.
- SIGs save employers from rates that are 20% higher when entering a residual market plan.
MAKING IT EASY TO DO THINGS YOUR WAY.
FINDING STRENGTH IN YOUR NUMBERS.
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Through sound management, we provide critical program stability and enhance responsiveness to member needs while enhancing the financial well being of our clients. Over time, that approach has led to consistent high marks from our clients, as well as regulator authorities, excess insurance carriers and other professionals providing services to these specialized programs, including CPAs, banks, actuaries, attorneys, auditors and outside managed care providers. From experienced service teams to specialized services and information systems, we provide the expertise you need to handle every element of your self-insurance needs, including program development, administration, management, accounting and underwriting services.
Program Development
Through a simple five-step process, we can help you evaluate interest within your association and develop a successful self-insurance program.
1. Establish Interest and Need
2. Undertake Program Development Study
3. Obtain Operating Authority
4. Establish Initial Membership
5. Begin coverage
Administration
As part of our comprehensive administration services, we can assist you with:
- Client service - answering coverage/billing questions
- Issuance of quotes and invoices
- Collection of member contributions
- Set-up and maintenance of member control sheets
- Issuance of certificates of coverage
- Development of program policies and procedures manuals
- Obtaining excess and department of insurance approvals
- Placement and monitoring of receipt of excess policies and endorsements, payment and excess premiums
- Performance of all accounting and financial reporting functions
- Handling of daily cash receipts and disbursements transactions
- Submission of required data to National Council on Compensation Insurance (NCCI)
- Calculation of payroll audits, claims retro adjustments
- Performance of renewal functions (annual and mid-term)
- Attendance and contribution at board of trustees meetings, educational meetings and seminars
Management
Our comprehensive management services include:
- "SAM" - System for Program Management
- Program feasibility studies
- Underwriting analysis - member and group
- Excess submissions
- Billing - initial and retro
- Linked claim systems
- Payroll audit analysis/billing
- Services customized by association - proposal formats, credit schedules, underwriting evaluation
- Planned - further integration - accounting
Accounting Services
- Monthly financial statement package
- Investment analysis
- Reserve/IBNR analysis
- Compliance testing - to ensure compliance with all applicable quarterly state tax filings
- Budgeting and forecasting
- Actuarial study coordination
- Coordination of annual audit with independent CPA
- Account receivables--collection of monthly premiums, invoicing, A/R recommendations and analysis, if necessary, coordination of collection and legal services
- Coordination of payroll audits
- Funding analysis
- Board meeting presentation
- Account payable service
- Bank reconciliation and funding
Underwriting Services
Through our extensive underwriting services, we will help you:
- Develop and send underwriting surveys to members
- Develop or updated underwriting standards and procedures
- Perform underwriting analysis to determine feasibility and viability of programs
- Assemble and submit new and renewal underwriting information to the excess carrier
- Negotiate appropriate terms and conditions with excess carrier
- Review and approve/decline potential new members
- Analyze reserves and incurred losses
- Develop loss triangles to calculate IBNR
- Determine actuarial implications of IBNR
- Complete aggregate claim tracking reports
- Provide risk management analysis on an ongoing basis
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Q & A on Self-Insured Group Workers' Compensation
An interview with Patricia McLaughlin, executive director of the Illinois Movers' and Warehousemen's Association (IMAWA), answers some tough questions about workers' compensation in self-insured groups.
 Q & A on Self-Insured Group Workers' Compensation
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