IAIABC Releases White Paper On Self-Insurance Groups

Madison, WI (WorkersCompensation.com) - The IAIABC Executive Committee is pleased to announce the release of its most recent white paper, Self-Insured Groups for Workers' Compensation. Following several high profile group failures, a special IAIABC Task Force on Self-Insurance Groups produced the white paper to describe effective strategies for regulating self-insurance groups. The paper is the result of study and consensus from state regulators, group administrators, and other self-insurance service providers. 

Thirty-nine jurisdictions allow self-insurance groups, which can be a successful mechanism for securing workers' compensation coverage at an affordable cost. “Although group failures may have dominated news coverage in the past several years, there are many states that have a long history of successfully regulating self-insurance groups. The IAIABC Task Force on Self-Insurance Groups wanted to provide a balanced perspective on this special type of self-insurance,” comments IAIABC Insurance and Self-Insurance Committee chair, Mike Baker.

The paper offers detailed commentary from several states on the causes of group failures. It then highlights both regulatory and administrative practices that have allowed groups to excel. The paper discusses important aspects of highly successful groups including ensuring the proper administrative management controls and board oversight, screening and composition of members, security requirements, and disclosure procedures. Workers' compensation agencies and state insurance departments may be particularly interested in the monitoring and management tools outlined including reporting requirements, audit procedures and early warning signs. Jurisdictional administrators will appreciate insightful commentary on lessons learned from group failures and practical advice on improving group solvency.

“I believe the practices outlined in the paper would be a useful self-audit tool for jurisdictions interested in maintaining and improving their regulatory approach” notes Alan McClain, IAIABC Immediate Past President and CEO, Arkansas Workers' Compensation Commission. Mr. McClain goes on to say “this is a must-read for the self-insurance community; it is the most comprehensive resource available on self-insurance groups.”

The Self-Insured Groups for Workers' Compensation White Paper was authored by Gregory Krohm, Senior Consultant, IAIABC and the IAIABC Task Force on Self-Insurance Groups. The White Paper was formally adopted by the IAIABC Executive Committee on April 23, 2012.

IAIABC Members: Download the White Paper for free at http://www.iaiabc.org/i4a/pages/index.cfm?pageid=3988
Non-Members: Purchase the White Paper for $45 at http://www.iaiabc.org/i4a/ams/amsstore/category.cfm?category_id=1

About the IAIABC

The IAIABC is an association of government agencies that administer and regulate their jurisdiction's workers' compensation acts. Along with these government entities, various private organizations involved in the delivery of workers' compensation coverage and benefits participate in the IAIABC. Since its inception in 1914 the IAIABC has worked to improve and clarify laws, identify model laws and procedures, develop and implement standards, and provide education and information sharing. The IAIABC strives to gather the best resources available to solve the practical administrative and operational problems of its members.

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