With workers' compensation costs rising, more and more large employers are considering self-insurance. Certain kinds of losses can be predictable and self-insurance is a more efficient way to pay for those losses.
Reduced costs can come from several areas, including:
- Lower fixed costs (program administration)
- Improved claims management
- Reduced losses through better loss control
- Improved cash flow
In addition, the self-insured employer gains more overall control of claims and receives more detailed claims information from the claims administrator.