Workers' Comp Self-Insured Groups

Since 1985, JI has been forming and administering self-insurance programs for public entities. This experience, coupled with our long-standing working relationship with the Texas Department of Insurance, has allowed JI to pioneer the way for private self-insurance groups. JI’s level of experience translates into peace of mind for private and public employers seeking workers’ compensation solutions to the rising rates, increasing claims, and escalating benefits.

Texas House Bill 2095, passed by the 2003 Texas Legislature, created the provision for five or more private employers of a similar business type and members of a qualifying trade association to enter into agreements to pool their liabilities for workers’ compensation benefits and employers’ liability.

Compared to traditional insurance, there are a number of advantages for associations to organize a self-insured group (SIG):

1. The SIG Board controls the program.
2. Provides the ability to manage and minimize marketing and sales costs (up to 6% less than traditional insurance).
3. Loss cost savings remain with the members, not with the insurance company.
4. Investment income accrues to the benefit of the SIG.
5. The overhead expense factor for traditional insurance is typically 35 to 40%. SIG expenses are often less than 30%.
6. The association receives timely access to meaningful loss information and claim trends.
7. The association receives timely access to financial data and performance measures.
8. You control the quality of services; services are contracted and can be customized to member specifications.
9. You control underwriting and rating philosophies.
10. You control refunds (dividends) for members.
11. A SIG often provides increased awareness of workers’ compensation safety issues for members.

• Self-Funded Health Benefit Plans
• Workers' Comp Self-Insured Groups
• Workers' Comp - Self-Funded Public Entities
• Public Entity Self-Insurance Pools
• Rent-a-Captive
• Loss Control