SiX Workers’ Compensation Program
Simply stated, alternative asset managers frequently overpay for Workers’ Compensation insurance.
Workers’ Compensation insurance is a regulated and mandatory form of insurance; every business with more than 5 employees must buy workers’ compensation insurance. For Alternative Asset Managers, this insurance comes at a high price based solely on total annual compensation with little to no recognition of low loss experience. Historically, the industry class has operated with excellent loss ratios, however, due to their size, many companies have been unable to obtain any program options beyond guaranteed cost.
To address this market disconnect, Vanbridge created SiX Comp. Specifically designed for Alternative Asset Managers, Hedge Funds and Private Equity Companies, this program provides competitive rates at policy inception and a dividend of up to 40% of standard premium based upon the loss experience of all insured participants after 18 months (the program is placed with an A XV rated insurance carrier). To date the program has returned 36% dividend in 2013 and a 37% dividend in 2014, 2015 and 2016. Over the last four years, we have returned approximately $3.1M of dividends to clients in the program. We are excited to continue to grow this niche program for the benefit of our clients and broker partners.
On a standalone basis, the alternative assets management firm was ineligible to participate in any carriers’ workers’ comp dividend program due to premium thresholds. The insured was not given any premium consideration by the market despite excellent loss experience. This company’s risk and loss profile was an excellent match for Vanbridge’s SiX Workers’ Comp Program. SiX Comp reduced this insured’s deposit premium by 50%.