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!

Fla. workers compensation case could lead to higher costs | Business Insurance.

We are officially in a hard market.

This case will ensure another rate increase in FL on 1.1 in my opinion.  After a +60% drop in rate, rates have been bumped up in the single digits over the last three years.  For the first time in a while, FL is not an attractive market for many carriers as rate increases have not caught up with results.  The state recognizes the issue and assuredly was not looking for this when trying to manage workers’ compensation costs.  http://news.wfsu.org/post/fla-workers-comp-rates-rise-insurance-regulators-call-fixes

For the PEO industry, this s great news as long as they have aligned profitability and growth strategies with their carrier’(s) underwriting appetite.  As was the case in the early 2000′s, “irrational capacity” is drying up and platforms to support tougher classes of business (staffing, transportation and heavy construction) are more rare.  As will be reported later on, their is a huge spike in residual market (market of last resort for wc), which means voluntary placement/capacity is challenged.  As a result, those that niche in these “tougher to place” spaces need to be careful to not build books that will not be supported.  Absolutely capacity for it, but not off the shelf —

More Than 200 Executives Will Gather In Washington To Raise Visibility For Professional Employer Organization Industry – Washington Business Journal.

Love this!

Can’t think of a more exciting time for the PEO industry!  Look forward to seeing everyone in Washington tomorrow…

Love the vision statement — makes a ton of sense in all aspects of the role of a non-operational/accretive employer.

Better or the same loss ratios in workers’ comp in ALL categories…recently proven out by NCCI’s Chief Economist http://www.ncci.com/nccimain/Events/MinutesPresentationsMaterials/Pages/NewsFromAIS2013.aspx

Far more covered by health insurance

Far more with essential employee benefits such as 401K, disability and life

Far more IRS compliance

Far more understanding in employment related issues such as ERISA, FMLA, COBRA etc, etc, etc

Far more HR management and legal resources

I like our chances — This is our house!

“History will be kind to me for I intend to write it.”
Sir Winston Churchill

We have a unique opportunity to define the right way of employment.  PEO allows entrepreneurs to follow and focus on their passion, whatever it may be.  The ability to innovate is a core to our society and PEO allows focus to be on that—innovation— versus the myriad non-revenue generating issues every employer is now overwhelmed by.

Let’s hit this fastball!

The many definitions of what constitutes a small business might not impact your business but to PEO client companies it will matter plenty for business owners who want to sell to the government, take advantage of federal loan guarantees, or know how a law will affect them.

via Tax Reform Riddle: How Big Can a ‘Small’ Business Be? – Businessweek.

This is very encouraging news on the state of workers compensation.

Workers comp combined ratio, premiums improve in 2012: NCCI leader | Business Insurance####.

New York needs to address the labor laws as respects workers compensation for the construction industry.

N.Y. Labor Law for Construction Doubling Rates, Scaring Away Carriers | PropertyCasualty360.