Workers Compensation Self-Insureds Gripe At Me Most For This One Reason
Yes, I admit it. I often write about Experience Modification Factors, premium audits, and other parts of the WC system. I should be writing more articles on Workers Compensation Self Insureds than I have over the years. Then again, I am not the only author that ignores this large market segment of the insurance industry.
Workers Compensation Self Insureds – A Few Numbers
Where do I go to find numbers on workers compensation self-insurance? I had to range far and wide to find most of the numbers. I had always estimated the self-insurance market at 15%.
A quick look at the overall numbers include
- According to the SIAA, 6,000 corporations and their subsidiaries are workers compensation self-insureds.
- Many governmental organizations self insure for workers comp – a massive amount of risk
- California pre-pandemic statistics
- $122 Billion total self-insured payroll
- 2.3 Million CA Workers covered by self-insurance
- 3,613 CA private entities are active self-insurers
- $4 Billion Estimated Claims Reserves (EFL)
- $1.4 Billion Medical and Indemnity payments
- 76,675 Open Workers’ Compensation cases
No Self-insurance Rating Bureau Pandemic Relief
A few recent articles of mine covered the Catastrophe Code 12 for claims and the Classification Code 0012 for furloughed employees both assisting the employers except for self-insureds. We may have to wait until 2026 to see the full effect of those two employer-assistance measures created by the Rate Bureaus.
Self-insureds do not usually submit their information to the rate bureaus as the insurance carriers are tasked with reporting this information through UNIT STAT reports.
The bottom line – workers’ compensation self-insurance had no “buffer zones” to assist with having to pay out of company funds to cover work-related COVID-19 claims. Please note that there could be some type of state government assistance to self-insureds by a specific state. I have not seen that development yet. If there are any, please comment below for the self-insured readers. Thanks.
Some Studies Leave Out Workers Compensation Self-Insureds
One of the reasons that I decided to write this article is a recent study by a well-known statistical company. Once I read the article, I had to disagree with the study in the article. I am not going to name the company in this article. You can find the study at the link provided. I may write an additional article next week on the study.
Workers Comp self-insureds comprise 15% of the market, but are often left out of studies – and I should write about that market segment more than I have in the past.
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