Resources & Information

Providing members with helpful information and resources is part of our mandate. We provide resources in this section of our website, as well as through our periodic eNewsletter to members, and in our annual members-only MCSIGA Resource Guide, and our Best Practices Guide (available on request to Members).

In addition, we provide information to non-member businesses looking to benefit by becoming part of a self-insured group for worker's compensation. We can also connect employers with an existing group that serves their business or industry.

Basic Information: How Does Self-Insured Workers' Compensation Work?

A Self-Insured Group is a group of employers in a common industry who have joined together to provide workers’ compensation benefits.

Group members pay premiums to the self-insured group, and the self-insured group pays expenses and claims for injured workers. Left over funds are called “surplus funds," which are returned to members through premium reductions and dividends. This surplus would be a commercial insurance company’s profit.

Regulated by the State of Michigan, these not-for-profit self-insured groups are organized to provide superior services and programs for group members.

Run by a board of directors made up of members, groups contract for services normally performed by an insurance company, such as:

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  • Program Administration
  • Safety and Loss Control
  • Claims Administration (Third-party Administrator)
  • Independent Accountants and Actuaries
  • Excess Insurance

All of these, working together, keep costs low for members and reduce group exposure.



Benefits of Self-Insured Group Insurance

Competitive
Pricing

Unused Premiums
Returned

Fast and Fair
Claims Handling

Comprehensive Loss Control Programs

Great Service
to Members

Self-Insured Group Insurance Offers:

Savings

Groups exist for the benefit of the members. Costs are very carefully managed and premiums are kept low to provide significant savings for group members.

Selective Membership

A self-insured group can choose to offer membership to only those employers who meet the group's eligibility requirements, which may include industry affiliation, experience modification rate, and qualifying financials among others. This limits the group's exposure to bad risks, and ultimately results in lower costs for all members.

Program Control

Members have control of the program through representation on the Board of Directors. Since the Board consists of employers in the same industry, a self insured group can feature industry-specific benefits designed exclusively for that program.

Claims Management

Aggressive claims management is crucial to a successful self-insured group. Groups maintain "fair but firm" policies and practices. Claim costs are carefully managed through the use of investigations of suspicious claims, Return-to-Work programs, effective safety and loss control programs and strong case management.

Safety & Loss Control

Most groups plans include a strong safety program designed specifically for their industry. Safety consultants help members keep their work places as safe as possible because working together to prevent injuries makes a huge difference in workers’ comp claims.

Regulatory Oversight

Michigan’s Workers' Compensation Agency oversees all self-insured group programs and requires annual financial reviews to ensure stability.

Excess Insurance

Self-insured groups purchase Excess Insurance to protect the group from large losses. All claims that exceed the group’s specified retention are paid by the Excess Insurance. This limits the group’s exposure.

More Helpful Resources

Self-Insured Group Insurance
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Attention Employers:

If you're an employer and are interested in joining a self-insured group to help reduce your workers' compensation insurance costs and promote safety in your workplace, contact us.

We can help match you up to a group that serves your business or industry.

MCSIGA Resource Guide
Get comprehensive information

mcsiga resource guide cover

Attention Members:

Email to request a copy of our helpful guide containing contact information for MCSIGA member groups, associate members (offering business, financial, legal and insurance services that our members can use), regulatory resources and more.

Also request a copy of our Best Practices Guide

MI Workers’ Comp. Agency
Note important contacts

State of Michigan Workers’ Compensation Agency

Mailing Address
PO Box 30016
Lansing, MI 48909

Fax: 517-284-8906

Web: www.michigan.gov/wca

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