Workers’ comp carrier fortunes are improving as data from 2014 reveal that many large insurers are seeing better financial results from earlier years. The result is lower advisory rates in many states, which is good news for employers, as insurers tend to use those rates as a benchmark. Insurers had fewer losses, which might indicate a trend toward less risky accounts. They also report fewer lost time claims because of higher return-to-work rates. This is a promising development for both employers and staffing companies, as it lowers costs all around.
If rates continue the downward trend, over the next few years, some staffing firms should benefit from greater choice in carriers. But many employers–staffing firms included–are in high risk industries and will enjoy the benefits, at least not as much, as other employers. Still, the good news for staffing firms is that they don’t need to be burdened by the high risk categories they staff for. If they have personnel in multiple class codes, they can take advantage of a client carve out through a professional employer organization (PEO) or employer of record (EOR).
Many staffing firms are covered by state funds. The residual market doesn’t always benefit from market turnarounds, as it has to cover employers with high experience modifications that can’t get coverage elsewhere. If staffing firms carve out the lower X-Mods using a PEO, they can benefit from lower rates in those categories.
For information on PEO’s and other creative workers’ compensation solutions. Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us as www.StaffingCompSolutions.com.
All the best
David Schek
david@StaffingCompSolutions.com
President-Work Comp Staffing Solutions