ProSight Specialty Binds First PEO Client for Risk Transfer

Risk Transfer is pleased to announce our 1st workers’ compensation bind order with ProSight Specialty Insurance (PSI) for a major PEO client.  Risk Transfer considers this a significant milestone with PSI; we look forward to delivering on PSI’s growth objectives with a value-driven approach to differentiation in the PEO niche, and creating and sustaining a multi-line PEO program that will deliver profitable results for ProSight.  Having successfully bound a Workers’ Compensation policy with PSI, Risk Transfer is now in the process of implementing general liability and auto liability products for PEO client companies.

To learn more about ProSight’s Best in Class offering for PEO’s, please visit ProSight’s website or click here.

Dino Fabrizio
Risk Transfer


The Capacity Group and Dowling Capital Partners’ IDIG Announce They Have Acquired a Stake in Risk Transfer

ORLANDO, FL – October 24, 2014 — Insurance Distribution Investing Group, LLC (IDIG), a joint venture formed in June of this year and backed by the insurance industry executives of The Capacity Group and by Dowling Capital Partners, announced the close of their previously announced transaction by acquiring a 50% ownership stake in Risk Transfer and affiliated companies of Risk Transfer.  Risk Transfer, an innovative insurance program manager specializing in difficult-to-place risks, Libertate, its small traditional commercial and personal lines provider, as well as RiskAwareTM LLC, its loss control and claim advocacy division are all included in the transaction.  RiskMD® LLC, Risk Transfer’s patent-pending technology company is also included in the transaction with a future option for IDIG to purchase a greater equity stake.

IDIG was founded to bring together industry experts and professionals in all insurance disciplines and to support owners and managers with a focus on innovation, products, and relationships.  RiskMD technology paired with the industry expertise of IDIG will bring unprecedented capabilities and efficiencies to the Dowling/Capacity universe.  “We’re excited to achieve this type of partnership and begin to see it flourish,” IDIG’s Managing Partner, Gary S. Maier, stated.  “Risk Transfer’s standing in their chosen industry is quite impressive.  Their level of commitment and innovation to their customers and trading partners is a major differentiator.  IDIG will further enhance and expand on their model by improving market and product positioning, and offering ways to further differentiate on expertise and customer innovation.”

Paul Hughes, CEO of Risk Transfer, commented, “On so many levels, partnering with IDIG is a home run.  They believe as we do that the PEO model is an important part of the future of insurance distribution.  Besides the traditional market relationships we can leverage with our partners from Capacity and Dowling Capital, they are anything from traditional in their focus on helping us to better the PEO model to make it even more impactful for American business.  Our “Money Ball” approach to underwriting insurance allows us to value an insurance transaction utilizing the most credible data available in the most efficient manner possible.  The speed at which we have credible, available information will help the new Risk Transfer to make the smartest decisions faster.

This partnership will allow more time towards the creation of new solutions for Risk Transfer’s clients.  Carl Gerson, COO of The Capacity Group, said, “We’re in a unique position to expand on our already growing relationship with Dowling Capital.  I’m thrilled Paul Hughes and his talented team are joining us and we’re excited about the combination of Risk Transfer’s innovation with the exceptional trading partners Capacity can bring to this market segment.  There will be more exciting news that we plan to share in the coming months too.”

Click here to read the full release on Yahoo Finance

About Risk Transfer
Started in May of 2000 as a retail brokerage, Risk Transfer has always focused on risks that required a more sophisticated understanding of the client’s business, and broader insurance solutions and cost containment structures. Risk Transfer Programs (fka Lighthouse Programs) was formed in 2003 to be the underwriting company for the group. Risk Transfer’s brokerage/consultancy still remain as the flagship operating companies of the group. Risk Aware (outsourced underwriting platforms/cost containment programs) provides comprehensive risk management analytics. Risk Aware was formed in 2007 to focus on customer advocacy and cost containment for our clients.  Lastly, RiskMD was formed in 2008 to provide the “art and science” of risk management. The scientific or process portion of RiskMD currently is patent-pending by the being reviewed by the US Patent Office and should receive a final utilization application.  RiskMD is the first platform to introduce data vault technology to the insurance industry and is poised to provide services to a myriad of players within the insurance space.

About Capacity Group
The Capacity Group of Companies offers an expansive range of standard and customized insurance and financial products, while providing superior customer service for all types of businesses, industries, and individuals. The Capacity Group has a diversified insurance distribution and product platform in Retail, Wholesale and Specialty Program business, as well as all types of personal, commercial, specialty and benefits lines of business. The Capacity Group is located in Mahwah, NJ and has 14 offices nationwide. The Capacity Group has grown to become one of the 100 largest insurance brokerage firms in the U.S. It is currently ranked number 43 by Business Insurance magazine, and is among the Top 25 privately held brokerage firms in the U.S. by Insurance Journal magazine.

About Dowling Capital Partners
Dowling Capital Partners (DCP) is a private equity firm that invests exclusively in the insurance industry. Investments are focused on the three main sectors of the industry – underwriting, distribution and technology/services. DCP was formed in 2011 by insurance industry veterans with senior level industry experience, including insurance-related private equity investment management, investment banking, industry research and operational and board-level roles within major insurance, reinsurance and brokerage companies. DCP’s investors include highly regarded insurance industry organizations and professionals. DCP provides its portfolio companies and co-investors with industry expertise, broad relationships and operating experience. For additional information, please visit

California ranks highest for workers’ compensation costs

Not that it is any surprise, but in a newly released report California has been ranked as the most expensive state for workers’ compensation cost.

Going back historically California was ranked the third most expensive state in 2012 and the fifth most expensive in 2010.  This increasing trend has had a profound impact on businesses with $3.48 going toward workers’ comp for every $100 of payroll.

However, it has not always been this bad, since 2000 California’s lowest ranking was in 2008 when it was number 13 in comp costs, and most of that was attributed to the fact that legislative reforms helped reduce employer premiums by 66%.

While California was the most expensive from a workers’ comp standpoint the other states next in line are Connecticut ($2.87 per $100 in payroll), New Jersey ($2.82 per $100 in payroll), and New York ($2.75 per $100 in payroll).  North Dakota is currently the least expensive state from a comp standpoint with 88 cents of every $100 in payroll going toward workers’ comp.

Click below to read the full article.

California ranks highest for workers’ compensation costs.

Workers Comp Writers Using More Mobile Device Apps and Other Tech Advances

Workers compensation insurers are increasingly turning to mobile device applications and other technology innovations in their bid to remain a force in the industry and serve their clients.  New technology and approaches are invading daily workers compensation underwriting routines. How is this happening? Here are some major findings:

  • Mobile devices are getting bigger in the workers compensation space. Most mobile apps in this area are focused on loss control, and third party administrators are using apps that handle injury reporting and other claims self-service functions.
  • As insurers increasingly use third party and multidimensional data in their workers compensation analyses, they’re spending more on proactive analytics to figure out which claims will produce long-term payouts.
  • Agent portals, business intelligence and core claims/policy administration systems place at the top of workers compensation technology initiatives.
  • Insurers are also focusing on improving their technology for billing, customer portals, distribution management, document creation and management, rating, underwriting workstations and specialized elements.
  • Pay as you go policies, where businesses pay a premium every payroll period versus an annual premium, are becoming more commonplace, helping to simplify how coverage is sold and handled.

Click here to read the full article…

Click here to download the RiskMD white paper on data analytics and workers’ compensation…

Is Ebola Compensable Under Workers’ Compensation?

The Ebola virus is the hottest news item of the month of October, and there is much to be ironed out on how to control the spread.  Since the first domiciled Americans to contract the disease are both health care workers, insurance industry analysis are starting to explore the potential aspects with regards to insurance coverages particularly, workers’ compensation.  The Claims Journal and the Insurance Information Institute weigh in with the linked articles below.

Ebola VirusIs Ebola Compensable Under Workers’ Compensation?

Facts and Perspectives on the Ebola Pandemic

“Understanding the Business Insurance Ecosystem: A Case Study on PEO” White Paper Presented by RiskMD, LLC

The following white paper, presented by RiskMD LLC, is an analysis of the existing Business Insurance Ecosystem and the role of a Professional Employer Organization within it.  The following paper will identify, analyze and opine to the model known as coemployment.  Click the link below or the cover image to the right to download the white paper.

Download “Understanding the Business Insurance Ecosystem: A Case Study on PEO” the white paper by RiskMD LLC.

Justworks Raises $6 Million to Help Businesses Handle Employee Benefits

Handling employee benefits is a headache for companies, especially small ones, and Justworks Inc. has raised $6 million to make it easier.

The startup has software that packages corporate benefits by aggregating multiple companies into a single entity, negotiating lower rates and eliminating the need for each company to deal separately with numerous corporate and government agencies.

The Series A round was led by Thrive Capital and includes Index Ventures, which provided a $1 million seed round for Justworks last year.

Justworks founder and Chief Executive Isaac Oates said the idea for Justworks developed over several years—at Inc. where he worked on transaction processing systems; at Adtuitive, a startup he founded where he discovered how hard it was to set up payroll; at Etsy Inc., which bought Adtuitive and where he built Etsy’s payments platform while also running human resources; and in the U.S. Army, where he experienced government bureaucracy and the need to avoid potential fraud.

“Part of what’s so painful about benefits is that the requirements put upon a small business are not that different from what a large business has to do, except that a large business can afford to hire people to manage it,” Mr. Oates said.

Based in New York, Justworks launched its service about a year ago and now has more than 2,000 companies on its platform, which is available in 43 states. The new money will be invested in the product and also in marketing and sales. Mr. Oates said the company has done no marketing.

Click here to read the full article on Wall Street Journal

Oregon Releases National Study on Workers’ Compensation Rates

The State of Oregon has released its 2014 study of Workers Compensation rate comparisons by state.  This study will point you to the State of Oregon’s website which will provide you with a map analysis of this study.

Top 5 Most Expensive?  California, Connecticut, New Jersey, New York and Alaska
Top 5 Lease Expensive? – South Dakota, Indiana, Arkansas, Virgina and Massachusetts.

Click here to read more…