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Travelers Insurance Partners with Lynch, Ryan & Associates to Reform Missouri's Workers' Compensation System

Strategic Insights

— 1 min read

Travelers Insurance and its Massachusetts subsidiary have partnered to overhaul Missouri's workers' compensation Assigned Risk Pool system. The partnership, chosen through a competitive bid process, will see Travelers absorb all potential losses in the pool, covering approximately 32,000 companies and a total premium of over $200 million. This unprecedented move is aimed at minimizing losses and providing a model for employer-based loss reduction programs. Lynch, Ryan & Associates, a consulting firm specializing in workers' compensation loss control, will work with The Travelers to implement innovative loss management systems.

Key Takeaways:

  • The Travelers has been chosen to insure approximately 32,000 companies in Missouri's Assigned Risk Pool, with a total premium of over $200 million.
  • The company has guaranteed that workers' comp premiums in Missouri will increase an average of only 0.04 percent.
  • The Travelers has accepted responsibility for all losses up to 115 percent of premiums paid.
  • Lynch, Ryan & Associates, a consulting firm specializing in workers' compensation loss control, will work with The Travelers to implement innovative loss management systems.
  • The firm, which is an independent subsidiary of The Travelers, has achieved an average workers' compensation loss reduction of 50 percent across the hundreds of companies it has served.
  • The company has worked with notable clients, including OshKosh B'Gosh, Humana Hospitals, and Boston University, among others.
  • The partnership is expected to serve as a model for reducing losses in Missouri's Assigned Risk Pool.

Statistics:

  • Approximately 32,000 companies in Missouri's Assigned Risk Pool will be insured by The Travelers.
  • The total premium for these companies is over $200 million.
  • Workers' comp premiums in Missouri will increase an average of 0.04 percent under The Travelers' plan.
  • LPC has guaranteed losses up to 115 percent of premiums paid.
  • 50 percent average workers' compensation loss reduction achieved by Lynch, Ryan & Associates across hundreds of clients.
  • 5 years: duration of Massachusetts' Qualified Loss Management Program (QLMP), which is being implemented in Missouri.

Sources:

  • Lynch, Ryan & Associates
  • Travelers Insurance
  • Missouri Assigned Risk Pool
  • Boston University
  • Massachusetts Institute of Technology
  • Mass. Port Authority
  • J.P. White Contractors
  • Campbell's Soup
  • Humana Hospitals
  • OshKosh B'Gosh

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