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SELF INSURANCE BY THE NUMBERS
$175.46 BILLION - TOTAL PAYROLL4,002,919 COVERED EMPLOYEES
1 OUT OF EVERY 4 WORKERS IN CALIFORNIA IS COVERED BY SELF INSURANCE
SELF INSURED GROUPS (SIG)
SELF INSURED GROUPS
• 31 SIGS IN CALIFORNIA
• 23 ARE ACTIVE
• 4,719 - SIG EMPLOYERS
SELF INSURED GROUPS
• 2.25% OF CALIFORNIA
WORKFORCE
• 354,000 - TOTAL EMPLOYEES
• $ 4.8 BB – TOTAL PAYROLL
SELF INSURED GROUPS
•TOTAL EFL $ 150,675,479
•POSTED DEPOSIT $ 219,134,602
•REQUIRED DEPOSIT $
217,054,946
•DEPOSIT SURPLUS $ 2,079,656SIGS MOVED FROM A DEPOSIT DEFICIT LAST YEAR
TO DEPOSIT SURPLUS THIS YEAR !!
OSIP IMPROVEMENTS
• INTRODUCING E-FILING ON 1-1-13
• STATEWIDE CLAIMS ADMINISTRATOR
TESTING
• ELECTRONIC TRANSFER FUNDS (ETF)
• NEWSLINE BULLETINS AND UPDATES
LACK OF REGULATORY ORDER
Board of Trustees
SIG Administrator
Members Auditors
Actuary
TPA
BRINGING ORDER TO DISARRAY
Auditors
Actuary
TPA
Members
Board of Trustees
SIG Administrator
REGULATORY GUIDANCE LETTERS
• Board of Trustees• Financial Auditors• Actuaries• Members• Actuarial Rate Plans
SIG ACTUARIAL PEER REVIEWS
REGULATORY EXAMINATIONS
6 SPECIAL EXAMINATIONS ORDERED
CA-SIG NEGOTIATED EXEMPTION IF SIG’s VOLUNTARILY PROVIDED A REGULATORY
EXAMINATION
VERY FEW SIGs HAVE TAKEN ADVANTAGE OF THE VOLUNTARY EXAMINATIONS
SB863
SB 863 CHANGESSECURITY DEPOSIT
•80% CONFIDENCE LEVEL IS
GONE
•TAX GAP IS GONE
•ACTUARIAL BASED COLLATERAL
DEPOSIT•ACTUARIAL CENTRAL ESTIMATE (EXPECTED)
•INCLUDING IBNR, ULAE AND ALAE
SB 863 CHANGESSECURITY DEPOSIT
SB 863 CHANGES
•PROFESSIONAL EMPLOYER
ORGANIZATIONS
AND SIMILAR TYPE STAFFING FIRMS
•NO NEW PEOS EFFECTIVE 1-1-2013
•ANY CURRENT PEOS REVOKED BY 1-1-2015
SB 863 CHANGESSELF INSURERS SECURITY FUND
•GREATER INVOLVEMENT IN COLLATERAL DECISIONS
•SISF IS INDEMNIFIED FROM LIABILITY IF OSIP DOES
NOT IMMEDIATELY TURN OF DEFAULTED LIABILITIES
FUTURE OF SIGs AND SELF INSURANCE
IN CALIFORNIA
•EXPANDING DEMAND FOR SELF INSURANCE
•INCREASED ACCESSIBILITY TO BECOME SELF
INSURED
•STREAMLINING APPLICATION AND
APPROVAL PROCESS
2013 REGULATORY PLAN
CONTINUE TO IMPLEMENT SB863
ALIGNING REGULATIONS WITH A FRAMEWORK FOR THE FUTURE
OPPORTUNITIES WILL EXIST FOR PUBLIC PARTICIPATION AND INPUT INTO THE
PROCESS
QUESTIONS
