Still cannot believe in our lifetimes that the Chief Economist of the NCCI would be the PEO industry’s Chief Salesperson… or better put, unbiased scorekeeper!
The recent study done by Harry Shuford of the NCCI succinctly tells the story we all knew over the years, and what has driven our passion to grow this business model. I get stupid about this because for more then 20 years I have been trying to debunk the following myths… thank you NCCI for having the professionalism and credibilitiy to call a spade a spade when others wanted a club —
The actual study— PLEASE READ — is now available on NCCI’s website… https://www.ncci.com/nccimain/Events/MinutesPresentationsMaterials/Pages/NewsFromAIS2013.aspx
Key points of this study which I beg everyone to read. There has NEVER been a study that proves out our model more the this — Gold.
PEO’s did not take down insurance companies in Florida, lack of financial regulation did (pg 17)
PEO’s have the same or better loss ratios — accross the board. Not lower in any category then general industry. (pg 10)
Development of claims for PEO’s was half! That might be a big discussion point when reviewing things like collateral for expected and past losses… (pg 16)
PEO’s have twice better compliance on issues such as audit (pg 23)
PEO’s do not undereport claims — in fact report more then overall industry thus giving better understanding to frequency issues (pg 10)
PEO clients do not get “lost in the system” <1% (pg 25)
Albert Einstein once wrote, “Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid.” The question I have for you at this point of our journey together is, “What is your genius?”
This quotation alludes to a long-standing allegorical framework. It is inappropriate to judge an animal by focusing on a skill which the creature does not possess. A fish is specialized to swim superbly, and its ability to climb a tree is non-existent or rudimentary. In the domain of education this allegory has been employed repeatedly for more than one hundred years. Hence, this quotation is built on ideas that have been in circulation among educators for many decades.
We are not stupid, just historically misunderstood. Resilience has made us that much smarter and will serve as our ally now that data provides clarity. We have had to be.
Like fish, PEO’s do not climb trees. They also are not insurance carriers… They are not the operational employer… They are regulated. Proof is in the pudding and the pudding was just served —
This is our story to write. Obamacare… Comp rates up… PEO’s outperforming now with clarity of data. This is going to be fun! Our genius is employment and our time is now!