The overall purpose of a self-insurance group is to better manage the cost of workers’ compensation insurance. The most significant determining factor in that process is “control”.
This is achieved through the use of more proactive loss control services that minimize accidents in the first place, aggressive management of claims rather than processing of claims which is usually the case in the commercial insurance market, use of Occupational Health providers that are more familiar with what an injured worker CAN do and what they CAN NOT do and better management of the cost of a claim through pharmacy benefit management and bill repricing companies.
The overall result is fewer and less severe claims in the first place, fewer lost workdays and faster return to work, lower cost of claims which then result in more stability in premiums and, if all goes well, there is a surplus premium that can eventually be returned to Members in the form of a surplus distribution.
