| “SUA Insurance Company is committed to the PEO industry. We provide a stable market for PEO workers' compensation insurance. Submissions received from PEOs that are certified in the best practices of Workers' Compensation Risk Management provide us an indication the PEO takes its obligations of maintaining the health and safety of its co-employees seriously. Our underwriting review of certified PEOs takes into consideration the diligence of PEOs in areas such as loss control, claims management, return-to-work, and other risk management practices."
Dan A. Cacchione
Vice President & Chief Underwriting Officer
SUA Insurance Company
"CI's certification program is certainly respected by the underwriters at AIGRM involved with PEOs. We consider PEOs that have received this certification to be better equipped to understand the specific rules and regulations that apply to both PEOs and insurance carriers and how those differ by state. Although we do not grant specific credits because a PEO has this certification, we find their overall adherence to better loss control practices generates an end result of improved loss experience. This produces a quote that has taken all of these positive features into consideration."
JoAnn Koster
Executive Vice President
AIG Risk Management
"There is no question in my mind that implementing an overall formal process that encompasses operational, contractual and risk management practices will benefit a PEO from an expense standpoint and improve their position for profitable growth in a competitive environment. While there are many different routes to take to achieve these formalized procedures, the WC RM Certification program provides industry specific best practices that continue to evolve to address the needs of a changing market place.
From an underwriter's perspective, a PEO that achieves the WC RM Certification demonstrates many of the desired attributes sought in a prospective insured. This designation might be the difference between a declination and the offering of a proposal during a hard market cycle, while conversely, this designation may provide the justification an underwriter seeks to provide the aggressive pricing needed to write and retain business during a soft market cycle."
Rob Morris, CRM, CIC
Vice President-Casualty Underwriting
Zurich Global Corporate Casualty
North America
"Carriers are always looking for risks that are “the best of the best.” It is often difficult to make those determinations from a typical submission. A PEO that already has CI’s Workers Compensation risk management best practices certification provides a level of confidence that proper systems and procedures are in place. Carriers all handle the underwriting process differently, but this program gives an underwriter the confidence that the important qualities of the superior risk are in place. The insurance marketplace is constantly changing, but a PEO with this certification will always enjoy an advantage over the competition."
Michael E. North, CIC
Senior VP Operations
Lumbermen's Underwriting Alliance
U.S.Epperson Underwriting Co.
Manager, LIG Insurance Agency, Inc.
"While no certification program can take the place of individual underwriting by the carrier, certain “endorsements/sanctions” give the carrier confidence in its own decisions and make the underwriting process simpler and less painful for the buyer. Two specific “sanctions” come immediately to mind: first, the presence of a CPA audited financial statement and second, the presence of WC Certification. Over the years, I have successfully underwritten risks both with and without these two documents. We complete our own “due diligence” in either case. However, given a choice, we will always select the risk that has been independently qualified by others—the “due diligence” process is verification versus uncovering facts. Also, the independently qualified risk usually receives the benefit of the doubt which relates directly to better terms, conditions, and ultimately costs."
Doug Lilak
President/CEO
SUNZ Insurance Company
"The Certification Institute's risk management certification process helps establish a link between the practices of the PEO and results that can be achieved. Also, over time, sound risk management should produce better WC pricing for PEOs."
James Ely
Vice President Underwriting
Cedar Hill Insurance
"I believe that the certification program is a great step forward for the PEO industry. It will not only enhance the credibility of PEO service arrangements, but will also serve as an important risk management tool to monitor their effectiveness."
Reg Beane
President
First Commercial Insurance Company
"The hard comp market may have initiated the CI WC certification program but its impact on the overall profitability of PEOs will sustain its long-term legacy."
Milan Yager
Executive Vice President
NAPEO
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"As an owner, it is nice to have an outside group reviewing our WC risk management practices. Our certification has helped us with getting our files better organized and we are improving our systems on an annual basis."
Ben Harrison
President
PRemployer, Inc.
"Odyssey One Source began its WC risk management certification process in 2003. Since that time, our developed loss ratio has consistently improved, from 66.49% in 2002 to 18.25% in 2008. Our average incurred loss per lost-time claim is 30% below the industry average and our overall WC expense, as a percentage of payroll, is also below the industry average. Providing the focused risk control services required by the best practices has enabled us to maintain a claims frequency rate (claims per $10,000 of payroll) near the industry average despite an aggressive growth plan. Additionally, implementing the certification program’s claims management best practices has had a positive and tangible effect on our carrier relations."
Carl Kleimann
President
Odyssey OneSource
"Landrum Companies recognized early the value of the certification process. We saw it as a way to apply best practices to our risk management program and to differentiate us in our market. We proved to be right on both counts. In the two years following our certification, we decreased our disability days per million dollars of payroll by 74% percent. In addition, we were approached by a prospect who was looking for a PEO in Florida that was both WC certified and had ESAC coverage. We were one of two PEOs under consideration. This prospect is now one of our largest clients."
Ted A. Kirchharr
Vice President/Chief Operating Officer
Landrum Professional Employer Services
"The Certification Institute, via the certification process, will create a new shared underwriting process for PEOs, and workers' compensation providers that will help bring back credibility to our industry. Through NAPEO and the Certification Institute initiatives, we should see more workers' compensation providers re-enter the PEO markets because of the process."
Garry Bradford
President/CEO
Unique Staffing
"Since our certification in 2005, Advantec is able to measure some significant results from our utilization of CI’s workers’ compensation risk management best practices. First, we have seen a dramatic increase in the number of claims reported within one business day of the incident. In the past 12 months, an average of 74% of Advantec claims have been reported within one business day, a very impressive reporting metric. More significantly, Advantec has also found a 28% decline in our average developed loss ratios for the three most recent policy years as compared to the four policy years preceding our certification.
In addition, Advantec is able to measure results of our participation in the CI program’s impact on denial ratios. Our denials per annual claim volume have increased on average 75% since our certification.
Improvements in all areas mentioned above led to an average decline in settlement costs in the three years since our 2005 certification. Advantec’s average nationwide settlement costs have declined by 46% over the past three policy years.
The value of the CI program to our risk management program is clear to Advantec. We offer a strong endorsement of the Certification Institute to all PEOs."
Angel Beltran
Vice President Risk Management
Advantec
"The certification process and the internal improvements it fostered enabled our PEO to receive favorable attention from a national WC carrier allowing us to move from multiple assigned risk policies for several affiliated companies in multiple states to a series of related policies. We have been very satisfied with better rates and better claims service plus a substantial reduction in internal administrative requirements. Our carrier is also very satisfied with our business and good loss results and our broker is satisfied with the relationship it has fostered. Our certification led to increased credibility with both our broker and the carrier and opened the door to better coverage."
Tom Gerlacher
CFO
BCN Administrative Services, Inc.
"Providing the very best in Risk Management services is a core competency of our PEO. I know that the Workers' Compensation Risk Management Certification program will help ensure that the service we provide will be the best it can be."
Bob Burbidge
President
Genesis Consolidated Services, Inc.
"We received our workers’ compensation certification in September 2006. Since then, we have closely followed the Certification Institute’s guidelines and recommendations for client screening and selection, as well as loss prevention and claims management. These practices have resulted in a direct decrease in our loss ratio for two consecutive years. We have also experienced a corresponding decrease in our workers’ compensation premiums. All of this makes us more competitive in our pricing and stronger in our market."
Wallace Brumley
Chairman of the Board/CEO
Brumley Professional Employer Services, Inc.
"The certification program provides an opportunity for the PEO and insurance industries to work together to ensure long term profitability and growth for all parties."
Paul Hughes
CEO
Risk Transfer Solutions |
