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201 6 a n n u a l r e p o r t
two Insurance pools, one MIssIon
Message froM ceo
NonProfits’ United is proud to present its Annual Report for 2016.
2016 was another stellar year for both pools. Change was forefront in both markets but the VIP and WCG pools showed resilience!!
The major change was in the workers’ compensation insurance industry. We saw more competition at the beginning of the year. There were new entrants in the market which drove down the pricing. The cause of the increase in competition was a reduction in both frequency and severity of claims in California. This in part is due to the decrease in risk exposure resulting from the passage and effectiveness of SB 863. Governor Jerry Brown signed Senate Bill 863 (SB863) into law on Sept. 18, 2012. The primary goal of this legislation was to increase benefits for injured workers and to produce a system-wide savings by reducing medical costs. In July, the market experienced another dip in premiums. The WCG Group faired extremely well recording an annual premium of $26,085,000 increasing member equity and surplus to $15,298,000. These results are attributed to the aggressive claims handling of our partner, York Risk Services, and the team of defense attorneys on our legal panel. Additionally, the “Nurse Triage” program which was introduced in 2014 is finally showing results by helping reduce claim frequency and severity. By year end 2016, the group had less than six (600) hundred claims out of twenty thousand (20,000) covered employees. Needless to say, change was no match to the resiliency of NPU and its partners!
The vehicle insurance pool ended the year with $3,568,000 in premium and surplus of $3,630,000. The market continued to be competitive, but the pool was successful in adding new members and consequently new vehicles to its fleet size. Competition for this class of business started to dwindle in the fourth quarter of 2016. The pool’s favorable loss experience was the result of lower frequency and severity of reported claims.
Ultimately, NPU’s job is to help members control and reduce risk exposure, which therefore minimizes loss. Achieving these feats equates to a stronger and healthier financial picture for NPU and its member organizations!
Our Annual Report tells this story.
Sincerely,Jeffrey R. Einhorn Chief Executive Officer
N
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n Prevent Accidents/Injuries
n Control Losses
n Stabilize Insurance Costs
MIssIon stateMent
We provide quality and cost-effective pooled risk coverage for private, nonprofit organizations.
We provide services that are responsive to our member’s needs and contribute to the professionalism of nonprofit organizations.
We help our members control risk, minimize loss and save precious resources for their programs and services.
our story
NonProfits’ United is the oldest self-insurance pool for nonprofit organizations in California. We have protected our members with high quality, cost efficient services across our state since 1988.
From our beginning, we have been a nonprofit governed by our members – building a proud legacy where every dollar benefits the membership, saves money and helps manage risk.
We began in response to crisis. As providers of nonprofit, specialized transit in California (paratransit), our founders were deeply impacted by the “hard” insurance market of the 1980s. Nonprofit organizations were shutting down. Thousands of underserved Californians were left without transportation.
A California Department of Transportation employee, Peter Steinert, received a grant to study the feasibility of self-insurance among nonprofit, specialized transit providers. We were born as Paratransit Insurance Corporation, with 73 members.
For three decades, we have grown to provide affordable insurance, expert claims settlement, safety and loss control, on-site consultation, driving training and personal, friendly service.
Today, our goal remains unchanged: help our member-owners devote resources to direct services in their communities, not to insurance payments, litigation and settlements.
Two Pools, One Mission
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partners In profIle
Arthur J. GAllAGher – An industry leader with
global reach, AJG serves as our broker. AJG places excess insurance above our self-insured pools and specializes in responsive risk management. The firm has been honored as one of the world’s most ethical companies.
Oliver WymAn – Founded in 1984 to support
creativity and entrepreneurial enterprise through financial services with a commitment to solutions, Oliver Wyman works as actuary for our vehicle and workers’ compensation pools.
Jill enGlAnd – Providing specialized legal
assistance to nonprofit organizations and small businesses for more than 20 years, Ms. England serves as our legal counsel. The Sacramento-based attorney graduated from King Hall at UC Davis School of Law.
Wells Fargo Bank – Widely recognized name backed by stability and trust. As our banking and investment partner, Wells Fargo provides a comprehensive array of wealth management services that are designed to help NPU meet its organizational goal and investment policies. The leadership and staff at Wells Fargo is a group of committed professionals who are stellar in their support of NPU, the NPU Board of Directors and Trustees and its members.
yOrk riSk ServiceS – A national leader in claims
management, York provides an essential service to NonProfits’ United. The firm takes care of injured workers and maintains lines of communications among our member-owners, doctors, employees and attorneys. York expertly manages claims for both our pools.
JAmeS mArtA & cOmpAny, certified public AccOuntAntS – Their extensive background and commitment to the industry allows them to bring NPU an audit that goes beyond the minimum requirements. They take the time to understand our needs and provide the special attention necessary to meet those needs.
Bickmore - Successfully serving clients for over 30 years providing Risk Management Consulting. The consultants on their service team include nationally-recognized experts in insurance consulting and risk management.
two pools
Vehicle insurance
Our Vehicle Insurance Pool is the first of its kind – a self-insurance pool for California nonprofits. We provide stable vehicle insurance rates and risk management strategies designed for the unique needs of nonprofits.
In active partnership with over 175 member-owners, we manage risks together – and we minimize premiums and losses.
Workers’ compensation Unprecedented in California, our Workers’ Compensation Pool is a self-insurance partnership for nonprofits.
This unique alliance allows our member-owners to prevent injuries, quickly settle claims and return workers to the job with minimum losses – benefitting employees and employers.
rIsk ManageMent servIces
We meet with members to personally evaluate risk exposure. From that baseline, we build strategies to improve safety and efficiency.
Our team of evaluators and certified instructors assess every need for our member-owners – from Web-based training to a “Virtual Driver” interactive driving simulator.
The team produces workshops and training semi-nars. We monitor industry trends in safety and risk control. And we have a lending library filled with training materials.
As your needs evolve, our Risk Management Services expand to cover all spectrums for our member-owners.
why 501(c)(3) Insurance Matters The words “united we stand” are not a cliché in the nonprofit insurance world. They are reality – the difference between success and failure.
Failure was an unfortunate reality for many nonprofits when we were founded in 1988.
Our colleagues were being driven from service by high insurance premiums, litigation, settlements and inadequate risk management protocols.
A new path was needed. Working in the specialized transit sector, our founders created a cooperative system of self-insurance for nonprofits. The cooperative strategy allowed our member-owners to control their own destinies with insurance and risk management. Dozens of organizations joined and were able to stay in business – providing essential services to Californians.
Today, our two pools – Vehicle Insurance and Workers’ Compensation – provide our member-owners with the strength of numbers.
United in purpose, our pooled resources provide stable rates and risk management to prevent injuries, quickly settle claims and avoid litigation.
At NonProfits’ United, none of our member-owners stands alone. “United we stand” is not a cliché for us. It’s why we exist.
“ I have worked with the good people at Nonprofits’ United for more than 10 years. They truly care
about our clients and are always looking for ways to help them get better. Their team is tireless and works
hard to provide a high level of loss control and claims management service which helps our clients control
their costs. The work that NPU does helps these nonprofits to focus on their mission. I appreciate that.”JoeThacker,ParTner
DerManouel Insurance Group
Insurance for nonprofIts
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vehIcle Insurance pool board of dIrectors
PRESIDENT
Linda Deavens Paratransit, Inc.
VICE PRESIDENT
Mark Shaffer UCP San Luis Obispo
TREASURER
Marshall Bohannon Chrysalis Enterprises
SECRETARY
Kitty Wilson
Dan Palumbo Age Well Senior Services
Steve Ramsey PSW
Jim Atkinson Atkinson Youth Services
Tom Roberts Whistestop
Maryanne Hayashi Central City Action Committee
Gloria Reyes Abrazar, Inc.
Grace Malson Community Transportation Agency
workers’ coMpensatIon group board of trustees
CHAIRPERSON
Laynee Kuhn Crossroads Treatment Center
VICE CHAIRPERSON
Linda Deavens Paratransit, Inc.TREASURER
Marshall Bohannon Chrysalis Enterprises
SECRETARY
Dan PalumboAge Well Senior ServicesMaryanne Hayashi Central City Action Committee
Steve Ramsey PSW
Gloria Reyes Abrazar, Inc.
Mark Shaffer UCP San Luis Obispo
Mitch Gariador Pomona Valley Workshop
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The fIrst of Its kInd in California, our Vehicle Insurance Pool brings stable rates and risk management services
to a volatile industry.
We were born during a crisis of unpredictable insurance rates in the 1980s. We have gained strength and protected our member-owners ever since.
Today, our cooperative program has more than 175 members and $3.7 million in net assets.
We help nonprofits reduce premiums and loss-related expenses, which allows our member-owners to focus greater resources directly on their missions.
Membership applications are open to any California 501(c)(3) that owns or leases at least one vehicle.
Range of Coverage:
n Vehicle Liability up to $10 million
nPhysical Damage
nUninsured & Underinsured Motorist
nRental Reimbursement
Plus:
nPremium Financing
nFlexible Liability Deductibles
nExpert Claims Settlement
nDriver Training Programs
Aging 19%
Animal 1%
DisabilityServices
10%
Family/CommunityServices
14%
Economic Opportunity
3%
Food & Nutrition
4%
Health Services
6%
Housing 2%
Youth 16%
Recovery 3%
Recreation 6%
Religious 6%
Theater/Arts 2%
Transit/Paratransit 5%
Environment 3%
vehIcle Insurance pool delIverables
MeMbershIp coMposItIon
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Optional Excess Coverage limits reinsured through Ironshore Indemnity Inc.
$500,001–$5,000,000 Reinsured through Ironshore Indemnity Inc., Great American Insurance Company and Evanston Insurance Company
NPU-VIP self-insures the 1st $500,000 of every claim
$10,000,000
$1,000,000
$500,000
tot
al
lIM
Its
of l
Iab
IlIt
y
vehIcle Insurance pool coverage & lIMIts
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vehIcle Insurance pool 2016 fInancIal profIle
stateMent of net assets
Assets Liabilities Net Assets
$8,568,472$4,938,044$3,630,428
stateMent of revenue & expenses & changes In net assets
Revenue Expenses Surplus (Deficit)
$4,630,293$4,169,689 $ 460,604
Audited Financial Statements are available on the NPU website Member’s Area(www.nonprofitsunited.com)
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Aging 5%
DisabilityServices
24%
Family/CommunityServices
12%
Economic Opportunity
8%
Health Services 1%
Housing 1%Animal 1%
Youth-Residential Homes
20%
Youth 13%
HHFH 4%
Recovery 4%
Theater/Arts 1%
Transit/Paratransit 4%
Environment 2%
workers’ coMpensatIon group delIverables
Our Workers’ Compensation Group is the first of its kind for California nonprofits – a self-insurance group
for the health and human services community.
Founded in 2004, the Group is evaluated twice annually through actuarial analysis to certify the pool is at the central estimate / undiscounted expected level – confirming the Group’s presence within regulations mandated by the Department of Industrial Relations, Office of Self-Insurance Plans.
Membership applications are open to any California 501(c)(3) with a primary function of providing social services (NAICS code 624***) or paratransit services (NAICS code 458***).
Broad Coverage for nonprofits:
n First dollar coverage to statutory
n $2 million Employers’ Liability
n Employees and Volunteers
n Expert Claims Settlement
Loss Control Services:
n Video Lending Library
n On-site Safety Assessment
n Seminars and Workshops
MeMbershIp coMposItIon
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Statutory (unlimited) coverage from Safety National above NPU’s retention
NPU-WCG self-insuresthe 1st $500,000 of every claim
Statutory
$500,000
tot
al
lIM
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of c
ov
er
ag
e
workers’ coMpensatIon group coverage
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workers’ coMpensatIon group 2016 fInancIal profIle
stateMent of net assets
Assets Liabilities Net Assets
$61,289,504$45,991,928 $15,297,576
stateMent of revenue & expenses & changes In net assets
Revenue (incl investment income)
Expenses Surplus Surplus (Deficit)
$27,240,545$15,298,905$11,941,640
Audited Financial Statements are available on the NPU website Member’s Area(www.nonprofitsunited.com)
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