CompWest, CMTA's workers' compensation partner
 June 1, 2013

Most employers view workers' compensation as a requisite for doing business in California. You pay your premium and hope you don't have any claims. Rates rise and fall as the "market conditions" harden and soften. CMTA's initial group program with State Compensation Insurance Fund (SCIF) in 2004 was formed to address the market conditions outlined above and for a couple of years this was an adequate solution. Participants received a premium discount, which kept them ahead of the changing market curve. But, in 2010 CMTA realized we owed our members more than a pricing solution, we needed to deliver value. This meant finding a partner that could help members achieve three protection objectives:

  • Protect the employees of manufacturing operations
  • Protect the general public
  • Protect the assets of our member organizations

Workers' compensation is costly for manufacturers and unless your organization is large enough to assume risk (retain losses), there are few insurance options available to you, especially when market conditions become unfavorable for employers. CMTA wants to provide members with long term solutions to the California workers' compensation challenges. To achieve this we need an insurance carrier partner who is:

  • 1. Committed to California's manufacturing sector
  • 2. Able to provide loss control services that help reduce the frequency of losses.
  • 3. Committed to claims management services that help participants reduce the direct and indirect losses associated with work related injuries.

Why these three? Because workers' compensation rates and premiums are driven by the loss experience of individual manufactures. The impact of your experience modification can either dramatically raise or lower your annual premium.

CMTA is not an insurance company, but we have risk management expertise and a degree of buying power and influence.

Many industry groups believe the way to capitalize on their common industry nature is to enter the Alternative Risk Transfer (ART) environment. But, these solutions are often risky and require participants capitalize the selected risk financing treatment.

Instead of thinking outside the box, which is risky and unpredictable, CMTA realized that it was important to think inside the box. We looked for a one-stop shopping solution that would provide a premium discount for CMTA members, help members control/reduce their direct and indirect loss costs, meet the compliance requirements of the regulatory bodies that oversee California's workers’ compensation system and deliver a long-term value proposition for managing workers' compensation costs. Accordingly, three years ago CMTA selected CompWest Insurance Company as our workers' compensation partner.

CompWest is a fundamentally sound, California focused workers' compensation specialist. Their success or failure lies with how well they serve California's employers. Like few other insurance carriers, CompWest understands that certain classes of business are more responsive to loss prevention and loss reduction practices than others. Manufacturing is one of these class sectors. Since manufacturers operate within four walls, employee activities are well supervised. This oversight is key to identifying and addressing unsafe acts which are the leading cause of work related injuries. Additionally, workers in manufacturing operations tend to be skilled and generally safety conscious and manufacturers recognize that productivity and safety go hand-in-hand. Providing a safe workplace is an industry-wide priority.

CompWest supplies considerable loss control support for their policyholders and their claims program, Workers' Compensation With Care, involves a host of loss reducing protocols such as their Keep At Work program.

There are two truths about workers' compensation:

  • First, pricing in workers' compensation seldom means value.
  • Second, no workers' compensation insurance carrier will ever bring the lowest price every year.

CMTA believes CompWest provides answers, support and results regardless of how the insurance market cycles. As a CMTA member participating in this program, when you review your renewal you must consider the quality of the claims management you receive through CompWest, the effectiveness of the loss control service they provide and the usefulness of the policyholder service and support they deliver. After working with CompWest ask yourself if you have a safer work environment for your employees? If you consider all of the benefits and the five percent CMTA group discount you receive, it's clear that participating in the CMTA Group Workers' Compensation Program delivers value that helps participants control the long-term cost of workers' compensation.

There is no short-term pricing solution to the long-term California workers' compensation dilemma. But, there is the unquestionable value of the CMTA Group Workers' Compensation Program, and CompWest.

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