The ABC Workers’ Comp Trust recently announced impressive financial results. During the most recent five year period between 2003 & 2007 Trust Members earned average annual dividends of 22% of premiums. And, although it’s still early, 2008 looks like another very profitable year for the Trust. Trust assets now exceed $6 million with more than $2.5 million scheduled to be distributed to Members. This strong performance is well-timed and will put Trust Members in a very enviable position heading into the next “hard” insurance market.

While workers’ compensation costs are expected to rise over the next 12 to 24 months in the commercial market, Trust Members will see their net cost decrease as cost savings generated during the past several years are returned to Members in the form of dividends.

Members also benefit from lower experience mods. In addition to the 22 percent dividend return, add in the effect of a lower experience mod when calculating the total savings enjoyed by Trust Members. That impact is estimated to be at least 5 percent, increasing the Member’s return on investment to 27 percent of premium or more. In addition, the Trust’s strong surplus position allows it more rate flexibility, enabling Members to avoid the rate volatility of the commercial market.

According to the New Hampshire Department of Labor, self-insurers consistently outperform the insured market with safer workplaces and lower costs. Successful self-insurers view their premiums as an investment, rather than an expense. For example, the Trust invests more than five times the insurance industry average in loss control services. Trust Members received more than 600 job site inspections in 2008 or an average of one visit every two weeks. Monthly Safety Committee meetings enable Members to receive cost-effective safety training, share valuable experiences with likeminded companies, and benefit from the collective resources of the Group.

The ABC Workers’ Comp Trust was formed in 1994 in response to the rapidly rising cost of workers’ compensation insurance. The Trust provides coverage to Members representing more than $65 million of payroll. For information on how you and your company can benefit by Membership in the Trust, contact the ABC Chapter office at 603-226-4789.