As the CFO for your organization, among your many challenges is to identify leaks in your financials. Fortunately, over the past decade you have not had to focus an extraordinary amount of attention on your workers’ compensation program. As a result of legislative changes, rates decreased more than 60%, insurance companies were clambering to capture your business, and claims were significantly suppressed.

Buying a workers’ compensation policy or alternative risk financing arrangement is only one step in controlling your cost. As you have already noticed, workers’ compensation is a growing line item in your expenses. Medical inflation is out of control and experience modification factors on are on the rise as well. Rates are rising at a rapid rate in Florida, with an increase of 22.8% just in the last three years. For the first time in almost a decade work comp rates rose on the national average 7.8%. Combine that with the hardening market place, workers’ compensation insurance companies are being selective in whom they want to write or keep as clients.  Loss sensitive plans that were previously very appealing to employers are being pulled way back. Whether it is through a sliding scale dividend or retrospective rating plan or a true paid loss plan, all of them are giving less money back to you or asking you to put more skin in the game.

If you are interested in gaining better clarity on the changes happening in the workers’ compensation marketplace, and exploring what options and processes may best fit your business (which are over and above the purchase of an insurance policy or rating plan), then let’s have a conversation.