- Uses sound risk management and innovative insurance technology to assess premiums
- Offers lower premiums as a result of low operating expenses
- Surplus at year-end will be distributed back to members with positive claims experience
- Members with negative claims experience will not be penalized
- Managed by trustees appointed by members
- Accountable and transparent practices
How the Cooperative Can Work for You
The
Cooperative utilizes a multi-employer trust employing innovative risk management and strategic procurement practices to reduce the cost of premiums by 10 to 15% each year, over what a similar offering would cost from an insurance company. At the end of each fiscal year, any surplus is distributed back to participating employers that have positive claims experience. Those with negative claims experience are not penalized. They simply do not share in the surplus. The Cooperative has been operating for almost five years, currently has 50 participating employers and has distributed surplus every year, to date, for a total of almost $1 million.
attains maximum cost efficiency through low operating costs and a fixed fee for administration. As well it has lower acquisition costs and employs state-of-the art risk management techniques. For participating employers, the cost savings can either be applied to the bottom lines or used to enhance their employee benefits program.
Its participating employers own the Cooperative and elect trustees to oversee operations. Employee benefits are just the first offering from the Cooperative. In the future, participating employers will be able to attain cost-effective casualty insurance. The Cooperative is also examining the idea of proprietary health care facilities where employees can conveniently access medical services under the same roof. This concept will further reduce the cost of claims and thereby premiums for participating employers.
You can see specific examples of how this idea can work for you here.
Click here to see the results of the Cooperative over the last 5 years.
