SIG with a Third Party Administrator

A Self Insured Group of employers has the capability to control all claims and funds. This level of control facilitates financial efficiency, and more importantly, delivers high quality medical care to the injured worker. Based upon my experience in WC claims - over thirty years in every insurance company, employer and TPA setting allowed by the state, and with varied employers - I firmly believe that self-insurance with Third Party Administration is the program with the best control of financial management, claim cost, and claim quality.

The SIG also has the political, financial, and legal status to maintain and develop a very effective and long term relationship with the TPA, avoiding yearly jumps from one administrator to another. This ensures the SIG’s claims quality and controls costs. In my opinion, the best program between the SIG and the TPA is one of mutual respect, contract control and adherence, effective support and communication with all parties, and has the ultimate goal of cost-effective and proper claims management.

Dinah Ackerson
Consultant - Workers' Compensation


Benefits of a Self Insured Group

Are you in control of your Workers' Compensation costs? Can decisions by the rating board, or the insurance industry negatively affect your bottom line?

With a self insured group (SIG) you receive the following benefits:

  • Because a SIG self selects its members and rates are based only on the claims experience of the members, you have control of your own costs/risks.

  • As a nonprofit group, excess contributions (which would otherwise be profits to an insurance company) are returned to members, providing a more stable long term environment.

  • Claims adjusters are hired by the membership, providing a voice in the administration process and the ability to more aggressively address fraudulent claims.

  • Comprehensive industry-specific, safety and loss prevention programs for all members.
  • Data from insurance industry rating authority A. M. Best proves that a well managed SIG outperforms both traditional insurance and captive insurance companies.

For a comprehensive review of your company's situation and how you might benefit from membership in a SIG, please contact us.