May 15, 2002
Retailers Fund outperforms other work comp insurers
Retailers Fund, the self-funded workers' compensation insurance program of the Michigan Retailers Association (MRA), is doing a significantly better job than other work comp insurers of controlling claims and costs, a new insurance industry study has found.
The study by Midwest Employers Casualty Company showed that Retailers Fund had fewer claims and a lower average cost per claim compared with a benchmark based on an identical mix of work comp payroll classifications from the rest of the state's insurers.
During the four years from 1998 to 2001, Retailers Fund participants reported 32 percent fewer workplace injuries than other Michigan retailers, according to the study. In addition, the fund spent an average of 36 percent less on each claim than the industry average.
As a result, total claims costs for Retailers Fund were 56 percent lower than those of other insurers for comparable retailers. The fund saved more than $4.8 million in medical and lost wage benefits during the four-year period, compared to the industry benchmark.
Retailers Fund Administrator James P. Hallan said the report confirms the value of members' solid safety practices and the fund's active claims management.
"Keeping costs down has enabled Retailers Fund to return more than $17 million in dividends to participants for 20 consecutive years," said Hallan. "It has also enabled the fund to go nine years without a rate increase -- rates were cut 3.51 percent for 2002. The fund has also given up-front premium discounts of 8.75 percent for the past three years."
For a free, no-obligation quote on Retailers Fund coverage, call MRA at 800.366.3699.
The Michigan Retailers Association is the unified voice of retailing in Michigan and the nation's largest state trade association of general merchandise retailers. MRA's more than 5,500 retail business members operate more than 12,000 stores across the state.
