Why Self-Insurance?
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:
1) Lower fixed costs (program administration)
2) Improved claims management
3) Reduced losses through better loss control
4) 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.