Workers' Compensation
Credit Union Self-Insured Group of California (CUSIG)
Since January of 2011 Workers' Compensation rates for Credit Unions in California have increased over 50%!
- The average cost of a California indemnity (lost time) claim has increased over 44% since 2005. The result is escalating Workers’ Compensation premiums for California Credit Unions.
- In 2011 for every $1.00 a California Workers’ Compensation carrier received in premium they were projected to pay out $1.30. Many carriers have indicated that because of this unprofitability they won’t write as much Worker’s Compensation insurance. Credit Unions have fewer carriers to choose form when looking at Worker’s Compensation alternatives.
- Because of the unprofitable environment Workers' Compensation carriers are reducing staff and cutting expenses resulting in a reduction of service. This lack of service puts more responsibility and administrative burden on Credit Unions to try and manage their own claims.
Workers' Compensation rates are expected to continue their upward trend resulting in a financial crisis for California Credit Unions!
Workers' Compensation rate volatility has been a major challenge for California Credit Unions. The Credit Union Self-Insured Group of California (CUSIG) is a Workers' Compensation self-insured group alternative to the traditional insurance market providing long term cost control.
- CUSIG was formed by five Credit Unions in 2004 to control skyrocketing workers' compensation costs. Since then, the program has grown significantly and by payroll volume, it now represents 20 percent of all California Credit Unions.
- Program design limits each member's exposure by capping catastrophic losses and annual loss payments through the purchase of excess insurance.
- Proactive claims handling is provided by a member-selected third party administrator. Members enjoy complete online access to claim data.
- Cutting edge loss prevention services include annual safety inspections, on-site safety training, and Credit Union - tailored training materials.
- The program's insurance providers are "A" rated by A.M. Best. In addition, CUSIG is accepted by the NCUA as an alternative to traditional Workers' Compensation insurance.
- Since 2004 Credit Union participants have saved over 40% in premiums when compared to traditional guaranteed cost insurance. Members retain equity in the program, and own any amount remaining after losses and expenses are paid.