Let’s sort through some facts over Employers attempt to discredit one of their main competitors, Self Insured Work Comp Groups (SIG’s). Of the 2 dozen California carriers that failed, none of these were SIG’s. California has tight SIG regulations with 80% actuarial confidence required, strict guidelines for approved Excess coverage and only permit homogeneous SIG’s with limitations. Yes NY,TN and KY have had major SIG insolvency issues which were generated from inadequate state regulations and in some cases, fraud by the program manager. IF Employers and other carriers consistently “strategically positioned themselves to offer critical customer services” then the multi billion SIG industry would not exist. For every insolvent SIG there are 50 that have never had an assessment and returned substantial surplus distributions while offering greater control to employers. An insolvent SIG or an insolvent commercial carrier is a major problem for every broker and insured. AIG’s issues suggest that perhaps SIG’s actually offer the most stable and secure home for Work comp coverage.
I believe the previous reader missed the point. The issue is full disclosue and understanding of the concept of joint & several liability.Often times the temptation to cut costs obscures the risk of joint & several liability. A better job of full disclosure should be done before a deal is signed.
I agree, in part, with the post by Mr. DiGioia. However, this article makes it impossible to get “the point” due to its obvious distortion of facts, misrepresentations, and blatant lies about the insolvencies of SIGs in California. I’m wondering where is the journalistic integrity of a publication that would allow a “press release”, masquerading as legitimate article, to be published without minimal fact-checking.
Demotech, Inc. is the financial underwriter for an insurance program that provides legal defense insurance to producers that place business with a financially stable self-insured group.
The SIG purchases the legal defense insurance coverage to protect its producers from litigation associated with insolvency. There is no cost to the producer.
This program is available to every financially stable SIG in the country, NY, CA,TN, KY, FL, MS, LA, etc. other than Massachusetts, as the carrier offering the pgram is NOT licensed in MA.
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Let’s sort through some facts over Employers attempt to discredit one of their main competitors, Self Insured Work Comp Groups (SIG’s). Of the 2 dozen California carriers that failed, none of these were SIG’s. California has tight SIG regulations with 80% actuarial confidence required, strict guidelines for approved Excess coverage and only permit homogeneous SIG’s with limitations. Yes NY,TN and KY have had major SIG insolvency issues which were generated from inadequate state regulations and in some cases, fraud by the program manager. IF Employers and other carriers consistently “strategically positioned themselves to offer critical customer services” then the multi billion SIG industry would not exist. For every insolvent SIG there are 50 that have never had an assessment and returned substantial surplus distributions while offering greater control to employers. An insolvent SIG or an insolvent commercial carrier is a major problem for every broker and insured. AIG’s issues suggest that perhaps SIG’s actually offer the most stable and secure home for Work comp coverage.
I believe the previous reader missed the point. The issue is full disclosue and understanding of the concept of joint & several liability.Often times the temptation to cut costs obscures the risk of joint & several liability. A better job of full disclosure should be done before a deal is signed.
I agree, in part, with the post by Mr. DiGioia. However, this article makes it impossible to get “the point” due to its obvious distortion of facts, misrepresentations, and blatant lies about the insolvencies of SIGs in California. I’m wondering where is the journalistic integrity of a publication that would allow a “press release”, masquerading as legitimate article, to be published without minimal fact-checking.
Demotech, Inc. is the financial underwriter for an insurance program that provides legal defense insurance to producers that place business with a financially stable self-insured group.
The SIG purchases the legal defense insurance coverage to protect its producers from litigation associated with insolvency. There is no cost to the producer.
This program is available to every financially stable SIG in the country, NY, CA,TN, KY, FL, MS, LA, etc. other than Massachusetts, as the carrier offering the pgram is NOT licensed in MA.
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