Minnesota Workers Compensation Challenge
Managing Worker’s Compensation Self-Insurance for Minnesota Employers
To become an authorized self-insurer in the state of Minnesota, it is vital to secure a qualified actuary. The Minnesota Department of Insurance now requires an actuarial statement to verify the adequacy of reserves and provide an analysis of workers compensation liabilities to be submitted every two years.
What this Means for Employers:
From a regulatory perspective, new individual self-insurers in the State of Minnesota must provide an actuarial certification for self-insured liabilities. This is to be prepared by an actuary annually for the first five years in order to meet the requirements of the Minnesota Statutes 2019, Section 79A.04, subdivision 2, (“Minimum deposit”). At the end of the five-year cycle, individual self-insurers must report every two years.
From a financial perspective, self-insuring a portion of your workers’ compensation cost implies significant financial reporting obligations. This can cause intense scrutiny of your self-insured claim liabilities from your company’s executive management and owners, as well as your auditors and other outside parties. Huggins will assist you in identifying trends that can potentially have a significant impact on future claim cost.
Huggins employs sophisticated tools that are specifically designed to identify the development of trends in self-insured liabilities, as well as perform ultimate cost projections, some at the individual claim level. Your self-insurance program was intended to provide cost savings through reduced frequency and severity of claims.
Please consider our overview of actuarial services for self-insured workers’ compensation entities.
Contact an experienced consulting actuary for more information:
Kim Piersol, FCAS, MAAA