Self-Insurance Programs

     From its very inception, AdminSure has designed, implemented and managed numerous self-insurance programs.  In the process, we have developed a clear understanding of what makes a program successful.

Why Self-Insure

     Self-insurance is a formal risk management technique whereby an organization chooses to pay its own claims.  For many organizations, it offers a superior alternative to traditional insurance:

•   It improves their cash flow since they pay claims as they are incurred instead of paying lump sum premiums up front.

•   It gives them more control over how their claims are handled, whether they wish to be more aggressive, or accommodating.

•   It can help them improve their public and employee relations, by putting their own interests ahead of the insurance company’s.

•   It gives them better feedback for proactive risk management and loss prevention, from which they reap all of the benefits.

•   And, it can save them a lot of money since they are not financing someone else’s losses.

What to Consider

     The benefits of self-insurance to an organization can be substantial, on their bottom line, and in other ways.  However, when implementing a self-insurance program, there are a number of things to consider:

•   Regulatory rules and regulations.

•   Reserve audits and self-insurance bonds.

•   Annual reports and actuarial studies.

•   Claims management responsibilities.

•   Technical audits and penalties.

Why Use a TPA

     Although it is possible to self-administer a self-insurance program, most organizations contract with a Third Party Administrator (TPA) such as AdminSure in order to realize a number of benefits:

•   They are able to focus on their main business instead of becoming bogged down with the details of a self-insurance program.

•   They are insulated from adversarial situations which sometimes accompany the claim handling process.

•   They delegate to the TPA the administrative complexity, deadlines and penalties that arise from Federal and State regulations.

•   They benefit from access to the TPA’s specialized claims, medical management and information systems.

•   And, they benefit from the TPA’s experience and know-how to achieve the best results possible.

What to Do

     Many organizations have entrusted their self-insurance programs to AdminSure, whose comprehensive suite of services is designed to meet their specific needs.  These services, which include claims administration, medical management and information systems, make self-insurance not only feasible, but desirable.

     Also, most organizations minimize their risk and maximize the effectiveness of their self-insurance programs by purchasing excess insurance to protect themselves against catastrophic losses.  A proper self-insurance retention (SIR) carefully balances premium with loss exposure, resulting in a program that achieves the best results.