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Although self-insured employers do not pay premiums for workers' compensation insurance, the Workers' Compensation Division calculates a simulated net premium for each self-insurer as the basis for the workers' compensation assessment. Under the competitive rating system, each insurance company determines an expense loading factor to apply to pure premium rates developed by the rating bureau. In estimating net premium for self-insurers, the division uses the lowest widely available expense loading factor used by an insurer who provides retrospective rating and premium discounts.
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Table 3 |
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Self-insured covered payroll, simulated manual premium, |
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standard premium, net premium, and average net premium rate for |
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1981-2005, with year-to-year percentage changes |
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($ thousands) |
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Calendar |
Covered
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Manual/base |
Standard |
Net |
Avg. net |
|
year |
payroll |
premium |
premium |
premium1 |
prem. rate2 |
|
2005 |
$11,361,010 |
$163,580 |
$150,860 |
$132,504 |
$1.17 |
|
|
7.49% |
7.98% |
7.59% |
7.62% |
0.12% |
|
2004 |
$10,569,228 |
$151,498 |
$140,220 |
$123,119 |
$1.16 |
|
|
6.04% |
6.12% |
10.11% |
10.22% |
3.94% |
|
2003 |
$9,967,351 |
$142,763 |
$127,347 |
$111,705 |
$1.12 |
|
|
3.26% |
2.62% |
11.24% |
14.36% |
10.75% |
|
2002 |
$9,652,699 |
$139,120 |
$114,478 |
$97,675 |
$1.01
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2.36% |
5.18% |
9.53% |
13.43% |
10.81% |
|
2001 |
$9,430,057
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$132,268
|
$104,515
|
$86,111
|
$0.91
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2.10% |
-1.19% |
-0.48% |
-0.35% |
-2.40% |
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2000 |
$9,236,309
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$133,866
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$105,016
|
$86,413
|
$0.94
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1.14% |
-5.66% |
-4.57% |
-4.66% |
-5.73% |
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1999 |
$9,132,528
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$141,899
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$110,051
|
$90,639
|
$0.99
|
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4.48% |
-14.14% |
-13.77% |
-13.45% |
-17.16% |
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1998 |
$8,741,206
|
$165,264
|
$127,630
|
$104,725
|
$1.20
|
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2.13% |
-12.09% |
-14.10% |
-14.11% |
-15.90% |
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1997 |
$8,558,976
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$188,002
|
$148,585
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$121,926
|
$1.42
|
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13.37% |
-0.99% |
-2.77% |
-3.26% |
-14.67% |
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1996 |
$7,549,904
|
$189,886
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$152,818
|
$126,036
|
$1.67
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0.16% |
0.22% |
1.39% |
2.83% |
2.66% |
|
1995 |
$7,537,588
|
$189,477
|
$150,726
|
$122,569
|
$1.63
|
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13.33% |
4.93% |
4.07% |
5.12% |
-7.25% |
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1994 |
$6,650,755
|
$180,573
|
$144,826
|
$116,604
|
$1.75
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6.19% |
-4.12% |
-8.21% |
-8.57% |
-13.90% |
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1993 |
$6,263,220
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$188,327
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$157,773
|
$127,537
|
$2.04
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6.46% |
-1.51% |
-3.43% |
-3.03% |
-9.09% |
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1992 |
$5,883,190
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$191,222
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$163,385
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$131,517
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$2.24
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10.70% |
2.83% |
11.45% |
11.41% |
0.90% |
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1991 |
$5,314,565
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$185,962
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$146,594
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$118,053
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$2.22
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6.08% |
-3.88% |
0.53% |
-1.84% |
-7.50% |
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1990 |
$5,009,941
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$193,475
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$145,816
|
$120,268
|
$2.40
|
|
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9.69% |
8.11% |
4.74% |
2.56% |
-6.61% |
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1989 |
$4,567,318
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$178,957
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$139,222
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$117,267
|
$2.57
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11.19% |
13.91% |
3.57% |
0.39% |
-9.51% |
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1988 |
$4,107,778
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$157,108
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$134,419
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$116,809
|
$2.84
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10.74% |
13.83% |
16.13% |
19.62% |
7.98% |
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1987 |
$3,709,413
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$138,016
|
$115,751
|
$97,649
|
$2.63
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|
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9.47% |
32.04% |
38.88% |
46.45% |
33.50% |
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1986 |
$3,388,555
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$104,525
|
$83,348
|
$66,678
|
$1.97
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|
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5.74% |
21.86% |
24.46% |
24.46% |
17.96% |
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1985 |
$3,204,729
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$85,775
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$66,967
|
$53,574
|
$1.67
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|
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0.09% |
2.40% |
-0.21% |
-1.01% |
-1.18% |
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1984 |
$3,202,005
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$83,766
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$67,108
|
$54,119
|
$1.69
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|
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-0.89% |
-4.28% |
-6.32% |
-5.57% |
-4.52% |
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1983 |
$3,230,868
|
$87,511
|
$71,636
|
$57,309
|
$1.77
|
|
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0.45% |
-23.61% |
-20.99% |
-23.39% |
-24.03% |
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1982 |
$3,216,432
|
$114,559
|
$90,667
|
$74,810
|
$2.33
|
|
|
-0.86% |
-24.70% |
-26.14% |
-30.85% |
-30.03% |
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1981 |
$3,244,456
|
$152,134
|
$122,760
|
$108,186
|
$3.33
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1
For 1983-1986 net premium was estimated as 80 percent of standard
premium. |
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For other years the 80 percent method was
used only for retrospective plans. All |
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other plans calculate net premium as standard
premium minus premium discounts. |
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2
Average net premium rate per $100 of payroll. |
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Source: Fiscal Services Section,
DCBS. Last updated 6/2006 |
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In addition to covered payroll, other factors influence the
net premium calculated for assessment purposes. These factors include the
industry classifications represented in the population of self-insurers, the
rate reductions in twelve of the last fourteen years (see Appendix Table 4),
employers' experience rating
modifications, and changes in the mix of rating plans employed.
The number of self-insured employers decreased over the two years from 164 active on December 31, 2000 to 158 on December 31, 2001 and then to 157 on December 31, 2002. This was followed by increases the following two years to 154 on December 31, 2003 and 157 on December 31, 2004, then a decrease on December 31, 2005 to 150. This was down from the overall peak of 195 in 1995. The highest simulated net premium for a single self-insurer in 2005 was the self insured group Oregon Contractors Workers Compensation Trust, Inc. at $6.8 million.
Source: Research & Analysis Section, Department of Consumer &
Business Services. Last updated 6/2006
Since 1988, two associations, the Special Districts Association and the CIS Workers' Compensation Group, have operated as self-insurer groups under the provisions of ORS 656.430(7). Since then other groups have been added. The Oregon Operators Group was authorized in 1995, the Oregon Education Employers in 1996, the Oregon Contractors Group in 1997, and the Oregon Non-profit Employers Trust in 2002, all under the same provisions. This aforementioned statute allows five or more employers who, as a group, meet a prescribed set of criteria, to become jointly and severally liable for one another's workers' compensation claims.
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Year |
|
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Net
Premiums |
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2002 |
8,280 |
1,801,040 |
20,065,862 |
14,393,693 |
61,406,323 |
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2003 |
1,471 |
1,432,826 |
18,453,838 |
20,583,680 |
71,233,509 |
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2004 |
233 |
1,036,486 |
18,076,818 |
20,942,686 |
83,062,638 |
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2005 |
0 |
862,469 |
16,277,422 |
23,267,677 |
92,096,601 |
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Note: There
were 150 authorized self-insurers and six self-insurer groups active in 2005.
There were 157 authorized self-insurers and six self-insurer groups
active in 2004. |
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There were 154 authorized self-insurers and six self-insurer groups
active in 2003. |
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There were 151 authorized self-insurers and six self-insurer groups
active in 2002. |
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Net
premiums: $97,675,198 in 2002,
$111,705,324 in 2003,
$123,118,861 in 2004 |
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and $132,504,169 in
2005. |
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Source: Research & Analysis Section, Department of
Consumer & Business Services. Last updated 6/2006 |
Table 4. Self-Insured Groups, 2004 & 2005 |
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2004 |
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2005 |
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Group
(year authorized) |
Mem- |
Net
Prem. |
%
chg. |
Mem- |
Net
Prem. |
%
chg. |
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bers |
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|
bers |
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Special
Districts Association of Oregon (1988) |
490 |
$2,939,304 |
14.3% |
498 |
$3,283,152 |
11.7% |
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CIS
Workers' Compensation Group (1988) |
216 |
$4,427,698 |
9.9% |
223 |
$5,675,732 |
28.2% |
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Oregon
Operators Self-Insurers Fund (1995) |
62 |
$711,672 |
13.0% |
60 |
$798,530 |
12.2% |
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Oregon
Contractors WC Trust IN (1997) |
312 |
$5,554,744 |
56.3% |
344 |
$6,790,416 |
22.2% |
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Oregon
Educational Employers WC (1996) |
20 |
$470,018 |
3.0% |
21 |
$684,825 |
45.7% |
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Oregon
Non-profit Employers Trust (2002) |
22 |
$712,204 |
17.7% |
28 |
$916,935 |
28.7% |