Small businesses that affiliate with PEOs experience better than overall marketplace results with lower than standard loss development rates. A new study by the Chief Economist of NCCI compares WCI loss development for companies that use PEOs vs. those that do not.
The National Council on Compensation Insurance (NCCI) is the nation’s most experienced provider of workers compensation information. The NCCI gathers data, analyzes industry trends, and prepares objective insurance rate and loss cost recommendations.
Chief NCCI Economist, Harry Shuford, presented the latest study on the PEO Industry at the recent WCI Conference. His findings confirmed that PEOs consistently deliver Workers' Compensation better than overall marketplace.
PEOs loss development is less than standard market. Over 42 Months of the study "large deductible client" non-PEO businesses were 1.41 vs. PEO rates of 1.278
PEOs have comparable or better loss ratios than non PEO businesses in all industries.
Development of claims for PEOs was half that of standard!
PEOs are two times more in compliance on issues such as audit
PEOs report claims more often than the overall industry
PEO clients do not get “lost in the system” <1% as often happens for small companies.
Read the complete study...
Savvy business owners hire PEOs, like Century II, to focus on their safety and risk management issues. Having a PEO partner lets the business owner work on sales, service, and business growth. It may be time for you to contact Century II.