Welcome to Trust-CRM.com

In the volatile world of workers' compensation insurance, one company stands out for the stability it offers clients. Irvine-based Compensation Risk Managers of California, LLC (CRM CA) provides insurance services to workers' compensation self-insured groups in the Golden State. CRM CA's newest self-insured group is the Vintners and Independent Producers Self Insurance Program of California (VIPSIP). VIPSIP has been developed specifically to help wineries combat the high cost of state-mandated workers' compensation. While there are many other group administrators in the country, CRM is one of the largest administrators in California and is the only one specifically serving the wine industry.

Cline Cellars' director of operations, Peggy Phelan, is a founding board member of VIPSIP, and raved about the new program. "This is something I love to talk about," said Phelan. "I've never been excited about an insurance product before, but this one I'm excited about."

For Cline, being part of VIPSIP means lower premiums but, more importantly, it's a whole new approach to workers' compensation insurance. "Through VIPSIP when we pay premiums, we're putting the money into our own bank rather than just giving it to the insurance company," said Phelan. "In this instance, we are the insurance company so, at the end of the year, if there is a surplus, we can elect to return it to the members as a dividend or roll it over and keep it in the bank.

"Also, because we now have an equity stake in this endeavor, there is a renewed focus on safety in the workplace," said Phelan. "That is a wonderful added benefit."

How It Works

Group self-insurance programs, such as VIPSIP, unite employers of a particular industry to provide statutory workers' compensation benefits to their employees. In California, these plans are closely regulated by the Department of Industrial Relations, Office of Self Insurance Plans. Member premiums provide funding for claims and expenses. Members also own 100 percent of group surplus funds, including interest income.

According to Chet Walczyck, chief operating office of CRM CA, self-insurance groups have existed for close to 50 years but have primarily been limited to large employers like Disney or Boeing. His company has crafted a model that provides the benefits of self-insurance to the small to medium-sized employer: perfect for wineries.

CRM CA is a subsidiary of CRM Holdings, Ltd., which went public in December of last year. CRM CA has been forming and managing self-insured groups in California since 2003. CRM CA is currently the largest manager of self-insured workers' compensation groups in California, with six groups representing $75 million in aggregate annualized premiums at year-end 2005. The six groups under the CRM CA wing include: franchise auto dealers, contractors, bankers, plastic manufacturers and, in the health-care industry, skilled nursing facilities and hospitals. Vintners are the newest group. The others have been up and running for a year or more and have reached what Walczyk calls a "critical mass"-around 100 companies or $5 million in premiums under management.

As group manager, CRM's role is to provide the group with a wide range of services, including general management, underwriting, risk assessment, medial bill review, case management, general record-keeping and regulatory compliance. They also provide safety and loss control services to group members to help them reduce workers' compensation risks and expenses.

"VIPSIP was founded in August of 2005 with four initial wineries," said Walczyck. "There are now 20 wineries throughout California that are a part of this group, and we're continually marketing the program to others to reach that critical mass."

It should be noted, however, that the program is targeted only to those wineries with a proven safety record. In the world of workers' compensation, a clean safety record is calculated by way of a very intricate formula and recorded as an experience modification, or "ex-mod," number. This number is used as a pricing mechanism, rewarding the above-average performers from a loss perspective or penalizing those that are below average.

The logical conclusion would be to think that the lower the ex-mod number, the lower the premium. But with conventional workers' compensation, this is unfortunately not always the case, according to Phelan. "We've always had a really good safety record here at Cline, but with some other companies underwriting workers' compensation insurance, our premiums kept going up. It was totally out of our control," said Phelan. "With VIPSIP, our premium is based on our own performance. And being insured with a homogenous group of companies means we all have the same safety challenges, whether we're talking about the vineyard, the bottling line, the cellar or the tasting room."

Healdsburg's Ferrari-Carano Vineyards and Winery is another VIPSIP founding member. Controller David James agreed with Phelan and echoed her sentiments about the lack of options available until VIPSIP was formed. "Despite having a stellar safety track record over the last seven or eight years, our premium rates would ebb and flow, leaving us with a feeling of instability," said James. "Part of the problem with workers' compensation is that, as a company, your rates are based on all the industries covered. But with VIPSIP, we're all like companies with similar ex-mods. And because CRM's safety person conducts an inspection before booking the business, we're assured that the other members are qualified as well."

Getting the Word Out to Wineries

Paul Stychno of E. Paul Stychno Insurance of Santa Rosa, California, is the managing general agent for VIPSIP and is responsible for finding potential new members for the group. Targeting only those wineries with annual workers' compensation premiums at or above $25,000 narrows the playing field somewhat. But marketing the program to those with ex-mod factors not exceeding 1.30 limits it even more (an ex-mod factor of .85, for example, represents an extremely well-performing company with very few accidents or claims).

"The self-insured concept is being received exceptionally well by the wine industry professionals we've approached," said Stychno. "We look for the cream of the crop in terms of safety records, and the wineries with good programs in place are thankful to have an alternative to paying high workers' compensation premiums. In my 22 years' selling the entire spectrum of full-service insurance, it is astounding to me to see how well this program is being received. We're seeing a 99 percent retention rate with self-insurance programs because once companies see how well they work, and the phenomenal level of service and control they get, they don't want to give it up."

Pete Seghesio of Healdsburg's Seghesio Family Vineyards is chairman of the VIPSIP board and another founding member of the group. In speaking about VIPSIP, Seghesio likened his previous insurance program to a 4,000-pound elephant, unable to move fast and without a sense of urgency. "In contrast, VIPSIP is a much more nimble entity," said Seghesio. "They have really sharp people running the program and managing claims. There are proactive safety meetings and thorough critiques of our operations, which help keep us on our toes, thus reducing the potential for accidents and injuries even further."

Seghesio went on to state that while workers' compensation rates have dropped as a whole, VIPSIP still offers rates far below the other providers. "I really think that over time, this will become the dominant program in the industry," said Seghesio. "As long as the self-insurance model retains its rates and its great level of service, it'll be around for a long time to come." wbm

For more information, contact Susan Chea of CRM at 877-276-4747 x2526 or at schea@trustcrm.com (www.trustcrm.com); or Paul Stychno of E. Paul Stychno Insurance, Inc. at 707-526-2033 (www.epsinsurance.com)

Back to All News

Workers' compensation provider CRM declares dividends of nearly $3.2 million for three New York trusts

July 27, 2005

(POUGHKEEPSIE, N.Y.) Compensation Risk Managers, LLC (CRM), a full service program manager and administrator for approved, self-funded workers' compensation insurance programs, today announced that that three of its trusts in New York state produced dividends of nearly $3.2 million in 2004.

The more than 1,200 members of these trusts, which include Elite Contractors Trust of New York (ECTNY), New York State Cemeteries Trust (NYSCT) and Transportation Industry Workers Compensation Trust (TIWCT), recently received dividends.

All three of the trusts, which combined represent $48 million in 2004 premiums, are group self-insured programs offered by CRM to help control the costs of workers' compensation without sacrificing safety and claims services. CRM has retained more than 95 percent of its members of the eight trusts it administers in New York state during the past six years.

ECTNY, which produced dividends of $2.5 million, serves New York contractors and their employees, such as plumbers, carpenters, masons, laborers and related construction trades. NYSCT, which produced dividends of $500,000, is available to New York cemetery operators, including executive officers, clerical employees, excavators, landscapers and salespeople. TIWCT, which produced dividends of $175,000, is offered to New York transportation-related professionals, such as truck or bus drivers, garbage collectors, livery employees, parcel or package deliverers, messengers, and salespersons or other industry-related employees.

CRM presently offers trust-based workers' compensation products to more than 1,900 businesses across New York state in many major industry sectors. Currently, the CRM trusts have gross written premiums of $180 million, including the New York and California programs.

In New York state, CRM offers workers' compensation trusts in eight distinct areas of trade - in addition to construction, transportation and cemeteries - including: healthcare, wholesale & retail, real estate, manufacturing, and public entities. CRM also administers five similar programs in California, including auto dealers, health care, plastic manufacturers, contractors and banks.

Trusts are associations of employers that have been grouped together to provide Statutory Workers' Compensation Insurance benefits to their employees. Trusts are subject to financial and operating guidelines enforced by the New York State Workers' Compensation Board.

Back to All News

Workers' compensation provider CRM achieves $50 million mark in California premiums

April 4, 2005

Extraordinary first-year growth for active new provider

(Irvine, CA) Compensation Risk Managers of California, LLC (CRM) today announced its written premiums in California have surpassed the $50 million mark.

A national, full service program manager and administrator for approved, self-funded workers' compensation insurance programs, CRM began offering coverage in California in September 2003.

"Naturally, we are very proud of earning such extraordinary acceptance here in California," stated Chet Walczyk, COO of CRM California LLC. "Reaching this remarkable milestone so quickly attests to the value of our offerings and the strength of the relationships we have built with our partners and affiliated agents," he added. "We are very pleased to have earned their trust because we recognize this can only be accomplished by providing superior value through superior service."

CRM began offering services in California to help alleviate the shortage of affordable workers' compensation insurance for workers in several particularly cost-sensitive sectors of the California workforce.

The California Department of Industrial Relations regulates the programs through which CRM serves these workforces: the Healthcare Industry Self Insurance Program of California (HISIP); Contractors Access Program of California (CAP); the Plastic Manufacturers Self Insurance Program (PMSIP); the Preferred Auto Dealers Self Insurance Program (PADSIP); and the Western Independent Bankers Self Insurance Group (WIBSIG), the first federally approved program of its kind in California.

"The success of these programs in delivering savings has helped contribute to CRM's rapid growth in written premium levels," said Daniel Hickey jr., president of CRM. "We have consistently provided savings of 20 - 40 percent compared with current state compensation insurance fund rates."

With regional offices in Irvine, CRM maintains a fully staffed loss-control department with certified safety professionals that offer support to program members. CRM also offers group self-funded workers' compensation programs for most major industry sectors through eight distinct trusts in New York state.

"Although we are relatively new to California and are growing rapidly here, we believe that our conservative approach to risk management has facilitated that growth," stated Walczyk. "Our expertise in risk management has enabled CRM to forge partnerships with industry-renowned insurance underwriters, such as AIG, New York Marine and General Insurance Company and Clarendon National Insurance Company."

Back to All News

New California workers' compensation plan WIB-SIG receives final approval for bankers

March 21, 2005

Compensation Risk Managers (CRM) meets industry-specific challenges

(Irvine, CA) Compensation Risk Managers of California, LLC (CRM) announced today that the Federal Controller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) have joined the California Department of Industrial Relations in approving the Western Independent Bankers Self-Insurance Group (WIB-SIG) of California, the first federally approved program of its kind in the state.

Compensation Risk Managers introduced this new program as a custom-designed solution to enable California banks to control the high costs of Workers' Compensation Insurance.

"We understand that every industry has its own very particular challenges in providing mandated worker's compensation coverage," explained Chet Walczyk, COO of CRM of California. "We bring superior value to this difficult area for businesses by analyzing those challenges and developing custom adaptations of our time-tested trust structure to deliver security, affordability and service."

Mr. Walczyk added, "Obviously, the fact that the Federal Reserve has approved this plan for FDIC banks attests to the soundness of self-insured groups."

A group self-insurance program such as WIB-SIG is an association of employers in a particular industry who have been grouped together to provide Statutory Workers' Compensation benefits to employees. These plans are regulated by the Department of Industrial Relations, Office of Self Insurance Plans. Member contributions provide funding for claims and expenses, and they own 100 percent of group surplus funds, including interest income. As program manager, CRM provides underwriting, cost control and administration, and typically provides considerable savings versus traditional insurance products.

"It is our goal to provide our member banks with high quality, value-added programs that can substantially increase the savings to their bottom line," said Nancy Sheppard, President & CEO of Western Independent Bankers. "By partnering with CRM to create the WIB-SIG program, these savings will help community banks to increase profitability, reduce expenses, and contribute to the economies of the communities they serve."

CRM coordinates third-party claims administration services, independent accounting, actuarial and legal services. To create group stability, CRM individually underwrites each member. Through "A" rated and admitted excess insurance, CRM provides a secure safety net.

"We are pleased to welcome bank employees into the growing number of industry categories that CRM is approved to cover," stated Martin D. Rakoff, CEO of CRM. "We are proud of receiving approvals from the designated regulatory agencies in recognition of the savings, service and security this new program will provide."

With regional offices in Irvine, Calif., CRM maintains a fully staffed Loss-Control department with certified safety professionals that offer support to program members. CRM offers group self-funded workers compensation programs for most major industry sectors - through 12 other separate programs or trusts in California and New York.

Back to All News

Workers’ compensation provider CRM names new COO for California

October 19, 2004

(Irvine, Calif.) – Compensation Risk Managers of California, LLC (CRM) has announced the appointment of a new chief operating officer.

Chet Walczyk, a veteran workers’ compensation insurance executive with more than 25 years of experience – the last five at CRM, will be responsible for all day-to-day operations and activities of the rapidly growing California company. CRM manages group self-insurance programs and is committed to significant expansion within the state.

In his new role as COO of CRM California LLC, Walczyk will report directly to CRM CEO Martin D. Rakoff and CRM President Daniel G. Hickey Jr. and will work closely with the boards of directors that govern the four separate programs CRM operates in that market.

“Chet Walczyk has been an integral part of CRM since its inception and has played a key role in the company’s growth, direction and ultimate success,” said Martin D. Rakoff, CEO of CRM. “We feel confident in knowing that Chet will bring his extensive knowledge of underwriting and product development to one of our fastest-growing markets.”

A native of Buffalo, N.Y., Walczyk was most recently senior vice president of risk management for CRM. Prior to joining CRM during its founding in 1999, Walczyk held several positions with many other insurance organizations. Walczyk has a Bachelor of Science degree from the State University of New York (SUNY) at Buffalo and maintains the ARM certification.

“The California division is an exciting opportunity for me personally and represents a new landscape for CRM to bring its multiple programs, good reputation and sound financial foundations to the state.” Walczyk said. “My challenge, and that of my staff, will be to help CRM capitalize on these valuable assets to grow our membership base by finding and understanding our client’s and prospective client’s challenges and develop creative and financially sound solutions for them.”

CRM began operating in California in 2003. Presently, CRM offers four separate and distinct workers’ compensation programs in California that serve workers in the industries of construction, plastics manufacturing, franchised auto dealers and health care.

All four of the programs are approved and regulated by the California Department of Industrial Relations and operate under the following names, respectively: Contractors Access Program of California (CAP); Plastics Manufacturers Self Insurance Program (PMSIP); Preferred Auto Dealers Self Insurance Program (PADSIP); and Healthcare Industry Self Insurance Program of California (HISIP).

With regional offices in Irvine and Sacramento, Calif., CRM is fully staffed to aggressively support all of its programs. CRM offers group self-funded workers compensation programs for most major industry sectors through 12 separate programs or trusts in California and New York.

Earlier this year, CRM reported results that show gross written premiums of $125 million, representing an increase of 27 percent from the previous year.

CRM’s conservative approach to risk management has enabled the company to forge partnerships with industry-renowned insurance underwriters, such as AIG, New York Marine and General Insurance Company and Clarendon National Insurance Company.

Back to All News

Workers’ compensation provider CRM receives positive funding status for contractors program from State of New York Workers’ Compensation Board

September 16, 2004

(POUGHKEEPSIE, N.Y.) Compensation Risk Managers (CRM) announcedtoday that its Elite Contractors Trust of New York (ECTNY) product received “no funding issues” status from the State of New York Workers’ Compensation Board in its annual regulatory funding review.

The level II review, which examined ECTNY’s fiscal year ending Sept. 30, 2003, means that ECTNY remains on solid financial ground and continues to provide high quality, trust-based workers’ compensation insurance to its growing customer base of contractors throughout New York state.

ECTNY has continued to provide price savings to its membership while also retaining 96 percent of its members through the last renewal period. Based upon current financial results, CRM will be proposing a significant dividend in the 1st quarter of 2005.

With workers’ compensation reform continuing to be a hot topic in the state legislature, the review confirms the financial strength of the contractors’ program. The trust continued to grow by more than $7 million in the past year, with a total manual premium approaching $30 million dollars.

“This positive review by the NYS Workers’ Compensation Board is a strong indicator that our ECTNY trust is in excellent financial and administrative shape and has grown in a volatile workers’ comp trust marketplace,” said Martin D. Rakoff, CEO of CRM.

“Our commitment to keeping only the best accounts in the trust ensures financial stability and continued smart growth in 2004 and 2005,” Rakoff said.

CRM presently offers trust-based workers’ compensation products to more than 1,800 businesses across New York State in most major industry sectors and is advancing to become one of the largest national administrators of self-funded workers’ compensation insurance programs. Earlier this year, CRM announced that it had gross written premiums of $125 million, representing an increase of 27 percent from the previous year.

CRM offers Workers’ Compensation Trusts in eight distinct areas of trade in addition to construction, including: healthcare, wholesale & retail, transportation, real estate, manufacturing, public entities and cemeteries.

Trusts are associations of employers that have been grouped together to provide Statutory Workers’ Compensation Insurance benefits to their employees. Trusts are subject to stringent financial and operating guidelines enforced by the New York State Workers’ Compensation Board.

Back to All News

CRM appoints new regional vice president of sales

December 7, 2004

Experienced executive Thomas Fosterto manage existing metro NY agents and develop new agent relationships

(Poughkeepsie, NY) – Compensation Risk Managers, LLC (CRM) has announced the appointment of Thomas Foster as new regional vice president of sales.

Mr. Foster has 20 years experience in the property casualty workers’ compensation industry. In his new position with CRM, he will be responsible for managing existing CRM agents in the metro-New York/Long Island areas. He will also develop and implement initiatives to build new strategic agent relationships for CRM. As regional vice president of sales, Foster will report to CRM Vice President of Sales and Marketing Alan DiGiovanni.

Foster is a graduate of Pennsylvania State University with a BA in business administration. Before joining CRM, he held a variety of insurance industry positions including Regional Production Manager and International Casualty Underwriter with such major carriers as Liberty Mutual, Wausau, A.J. Gallagher and AIG.

“We are pleased to welcome Tom Foster to CRM, and we are looking forward to utilizing his broad expertise in enhancing our relationships with agents in our very important metro-New York/Long Island area,” said Dan Hickey, Jr., President of CRM. “We have every confidence that Tom’s extensive knowledge of underwriting, customer service and strategic sales development will enhance our competitive position in this area. CRM distributes its products exclusively through appointed agents. Therefore, building and maintaining mutually beneficial relationships with agents is crucial to our success.”

Earlier this year, CRM reported results that show gross written premiums of $125 million, representing an increase of 27 percent from the previous year. Currently, gross written premiums are at $136 million.

CRM’s conservative approach to risk management has enabled the company to forge partnerships with industry-renowned insurance underwriters such as AIG, New York Marine and General Insurance Company and Clarendon National Insurance Company.

Back to All News

CRM appoints new claims account coordinator for California

January 10, 2005

Experienced workers’ compensation claims representative and examiner Edward Low has earned industry honors

(Irvine, CA) – Compensation Risk Managers of California, LLC (CRM) has announced the appointment of Edward Low as the firm’s new claims account coordinator for California.

Low has extensive experience in workers’ compensation insurance coverage as a claims examiner. In his new position with CRM, he will work directly with CRM’s third-party claims administrator in California and will report to Senior Account Coordinator Therese Frost.

“The acquisition of Eddie Low to our California program brings a high level of technical expertise to work with and support our Claims TPA and Matrix Absence Management,” said Adam K. Strong, vice president of Claims for CRM. “In addition, Eddie will provide account coordination services for select members.”

Low is a graduate of California State University, Los Angeles, with a Bachelor of Arts degree in Health and Safety Studies. He also holds a Self Insurance Administrator Certificate and a Certificate in Workers’ Compensation Claims Administration.

Low has served with distinction in several previous California workers’ compensation insurance industry positions. As a workers’ compensation insurance representative with the State Compensation Insurance Fund in West Los Angeles, he was selected “Rookie of the Year” in 1991 and cited as one of the top adjusters of the Fund in 1992.

As claims examiner with the Fremont Compensation Insurance Company in Glendale, he was responsible for claim files involving timely payments of all required benefits in addition to settling permanent disability and handling vocational rehabilitation benefits.

As claims specialist with CNA Insurance, also in Glendale, he managed indemnity claims in California and Arizona. As senior claims examiner for Tokio Marine Management in Pasadena, he serviced such clients as Pioneer Electronics, Mitsubishi Electric and Electronics, Fujitsu, Nissin Foods (USA) Co., Inc. and NGK Sparkplugs, Inc.

CRM began operating in California in 2003. Presently, CRM offers four separate and distinct workers’ compensation programs in California that serve workers in the construction, plastics manufacturing, franchised auto dealers and health care industries.

All four of these programs are approved and regulated by the California Department of Industrial Relations and operate as Contractors Access Program of California (CAP), Plastics Manufacturers Self Insurance Program (PMSIP), Preferred Auto Dealers Self Insurance Program (PADSIP) and the Healthcare Industry Self Insurance Program of California (HISIP).

With regional offices in Irvine and Sacramento, Calif., CRM is fully staffed to aggressively support all of its programs. CRM offers group self-funded workers’ compensation programs for most major industry sectors through 12 separate programs or trusts in California and New York.

Back to All News

Workers’ compensation provider CRM limits premium costs to customers through effective fraud protection

January 25, 2005

(POUGHKEEPSIE, N.Y.) Compensation Risk Managers, LLC (CRM) announcedtoday the successful detection, prosecution and restitution recovery from a claimant, proving the effectiveness of its enhanced fraud detection system.

In response to this problem, CRM has developed an aggressive fraud detection effort.

“We take fraud very seriously and are determined to limit our customers’ premium costs through aggressive early detection,” stated Martin D. Rakoff, CEO of CRM. “We work closely with our affiliated agents to achieve this important savings on behalf of customers,” he explained, citing the program’s success in a recent case to demonstrate its effectiveness.

When an employer reported suspicions of a claim, CRM initiated surveillance that resulted in videotaped verification that the claimant was not disabled but instead was actively working, undertaking heavy physical labor.

As additional verification of fraud, CRM produced several “application for additional payment” forms in which the claimant had fraudulently certified that no work had been done and no wages were earned while out on workers’ compensation. This constituted the “material lie” that is required for prosecution under Sections 114 and 114(a) of the Workers Compensation Law. When this information was submitted to the NYS Fraud Inspector General’s office, as well as the video footage, an arrest and conviction were made.

Confronted with this evidence and charged with numerous felony counts, the claimant plead guilty to insurance fraud, was placed on probation for five years and ordered to pay $11,235 in restitution.

“In 1996 Governor George Pataki signed legislation that created the Office of Workers' Compensation Fraud Inspector General and elevated workers' compensation fraud to a felony, sending a clear message that fraud will not be tolerated," said Workers Compensation Fraud Inspector General John H. Burgher. We appreciate the assistance provided by the public and organizations like CRM to help combat fraud and control workers' compensation costs."

Compensation Risk Managers recommends that any and all suspicious activity be reported to the NYS Fraud Inspector General's office at 1-888-363-6001 or via the Internet at http://www.wcb.state.ny.us/. Reporting is confidential and is referred directly to CRM for a response. CRM has fraud detection materials and posters available, as well.

The National Insurance Crime Bureau estimates workers’ compensation fraud costs insurers $5 billion annually; these are costs that insurers must recover through increased premiums. Early detection of fraud and successful prosecutions that result in restitution therefore benefit all companies and workers. For example, the United States Postal Inspection Service estimates that its workers compensation fraud investigations resulted in total savings of $26.3 million in a single year.

CRM’s Elite Contractors Trust of New York (ECTNY) covers the claimant and other construction workers across New York State. Aggressive fraud detection is one cornerstone of ECTNY’s success.

ECTNY is a self-funded workers’ compensation trust offered by CRM to New York contractors and their employees – such as plumbers, carpenters, masons, laborers and related construction trades – to help control the costs of workers compensation without sacrificing safety and claims services. The trust continued to grow by more than $7 million in the past year and in September it received “no funding issues” status from the State of New York Workers’ Compensation Board in its annual regulatory funding review.

ECTNY has continued to provide price savings to its membership while also retaining 96 percent of its members through the last renewal period. Based upon current financial results, CRM will propose a significant dividend in the 1st quarter of 2005.

Back to All News

Workers’ Compensation provider CRM reaches $125 million milestone in written premiums

March 1, 2004

(Poughkeepsie, N.Y.)Compensation Risk Managers, LLC (CRM), a national, full service program manager and administrator for approved, self-funded workers’ compensation insurance programs, today announcedthat net written premiums have surpassed the $125 million mark. As traditional insurance companies dramatically increase prices to recover from years of inadequate pricing, CRM continues to attract new customers.

In January 2003, CRM had net written premiums of $98 million, representing an increase of 27 percent for the past year. CRM expects to grow to $200 million in written premium by the end of 2004.

CRM presently offers workers’ compensation products for most major industry sectors throughout New York and California and is advancing to become one of the largest national administrators of self-funded workers’ compensation insurance programs.

CRM began its operations in 1999. Five years later, the fast-growing company provides trust-based insurance to more than 1,800 businesses across New York State with a staff of 95 employees at its Poughkeepsie, N.Y. headquarters. It also maintains six satellite offices throughout the state, including Albany, Buffalo, Long Island, New York City, Rochester and Westchester.

Daniel G. Hickey, Jr., president and founder of CRM, noted, “We are pleased to have achieved this industry milestone, as it demonstrates our ability to provide our members with the insurance coverage and services the marketplace demands.”

“Despite a sluggish economy, CRM had an outstanding year in 2003,” Hickey continued. “As the rates of traditional insurers continue to rise, CRM has been able to attract more customers through innovative and prudent underwriting guidelines, cost savings products and the superior risk management of its trust models.”

To help control the rising costs of workers’ compensation insurance, CRM offers Workers’ Compensation Trusts in nine distinct areas of trade, including: healthcare, contracting, wholesale & retail, transportation, real estate, manufacturing, public entities, cemeteries and auto dealers.

Trusts are approved associations of employers that have been grouped together to provide Statutory Workers’ Compensation Insurance benefits to their employees. Trusts are subject to stringent financial and operating guidelines enforced by the governing insurance departments of each state.

Back to All News

Workers’ compensation provider CRM expands into California with three new programs

March 24, 2004

(Woodland Hills, Calif.) To respond to the growing needs in California for affordable workers’ compensation insurance, Compensation Risk Managers (CRM) has begun offering coverage through three new programs that serve workers in the industries of contractors, plastics manufacturers and auto dealers.

The three group self-insurance programs were created by CRM to help control the rising costs of workers’ compensation insurance for employers in the cash-strapped state without sacrificing safety and claims services.

All three of the programs are approved and regulated by the California Department of Industrial Relations and will operate under the following names: Contractors Access Program of California (CAPC); The Plastics Manufacturers Self Insurance Program (PMSIP); and The Preferred Auto Dealers Self Insurance Program (PADSIP).

“In response to the increasingly difficult workers’ compensation market, we’ve found that California employers are eagerly turning to nontraditional risk financing techniques for coverage,” said Daniel G. Hickey Jr., president of CRM. “CRM is pleased to offer a cost-effective alternative that can realize as much as 30 percent in savings for California employers compared with current state fund rates.”

With newly opened regional offices in Woodland Hills, Calif., CRM maintains a fully staffed loss-control department with certified safety professionals that offer support to program members. CRM has had success with its group self-funded programs in New York State where it offers workers compensation for most major industry sectors through eight separate programs or trusts.

“CRM’s expertise in claims management has made a measurable difference in reducing overhead costs for our business since we’ve partnered with them,” said William Pittinger, president of All Suffolk Plumbing Inc. of Bohemia, N.Y.; and board member of CRM’s Elite Contractors Trust of New York. “The level of competence and thorough attention CRM pays to every detail gives our company a stronger sense of safety than we’ve felt with any other workers comp organization. I expect CRM will be very successful with its new program in California.”

The company recently reported New York results that show gross written premiums of $125 million, representing an increase of 27 percent from the previous year. CRM expects to grow to $200 million in written premium by the close of 2004 and is poised to become one of the largest national administrators of self-funded workers’ compensation insurance programs.

“As the rates of traditional insurers continue to rise, CRM has been able to attract customers through innovative and prudent underwriting guidelines, cost savings products and the superior risk management of its group self-insurance models,” said Hickey. “CRM’s aggressive underwriting and commitment to keeping only the best accounts in the trust ensure credibility of the numbers and keep the programs solvent.”

CRM’s conservative approach to risk management has enabled the company to forge partnerships with industry-renowned insurance underwriters, such as New York Marine and General Insurance Company, Clarendon National Insurance Company and AIG.

Back to All News

Workers’ compensation provider CRM continues to provide trust-based coverage to health care workers in NYS

March 16, 2004

(Poughkeepsie, N.Y.)Compensation Risk Managers (CRM) announcedtoday that its Healthcare Industry Trust of New York (HITNY) product remains on solid financial ground and continues to provide high quality, trust-based workers’ compensation insurance to its growing customer base of health care facilities throughout the state of New York.

With workers’ compensation reform bills currently being proposed in the state legislature, CRM made the announcement to underscore its solvency – and to avoid confusion with a competitor in the health care trust industry that has received recent attention regarding its administrative difficulties.

HITNY is a self-funded workers’ compensation trust offered by CRM to New York health care facilities. The trust serves employees of various nursing homes, hospitals and human, adult care and child-care services.

Endorsed by the New York State Health Facilities Association (NYSHFA), HITNY was formed by CRM to help control the costs of workers compensation for health care facilities without sacrificing safety and claims services.

“While other administrators in the workers’ comp trust industry have recently stumbled, CRM had a record breaking year in 2003 and is in excellent financial and administrative shape,” said Martin D. Rakoff, CEO of CRM. “CRM is poised for continued stable growth in 2004 as more customers recognize the value of our superior health-care trust model.”

At its last financial filing in September 2003, CRM filed a financial report on behalf of HITNY, which showed a trust equity ratio meeting the financial guidelines required by the New York State Office of Self Insurance.

“CRM’s aggressive underwriting and commitment to keeping only the best accounts in the trust ensure financial stability and smart growth,” Rakoff explained. “CRM recently negotiated new excess insurance agreements with “A” rated carriers. This new relationship allows HITNY to write business throughout the state with no limitations on the concentration of employees in a given area. Of even greater importance, these new excess insurance agreements negotiated by CRM resulted in a reduction of $1 million in reinsurance premiums for HITNY.”

“CRM has played an important role in helping us keep our costs down, which is critical to our not-for-profit organization,” said Diane J. Rodriguez, director of Human Resources of AHRC Nassau, an organization with more than 1,900 employees that provides services to individuals with mental retardation and developmental disabilities throughout Nassau County, New York. “In the nearly two years we have partnered with them, we have come to rely heavily on CRM’s attentive customer service, superior claims management and sound advice on safety issues.”

CRM recently announced that it had gross written premiums of $125 million, representing an increase of 27 percent from the previous year. CRM expects to grow to $200 million in written premium by the close of 2004.

CRM provides trust-based insurance to more than 1,800 businesses across New York State with a staff of 95 employees at its Poughkeepsie, N.Y. headquarters. It also maintains six satellite offices throughout the state, including Albany, Buffalo, Long Island, New York City, Rochester and Westchester.

CRM offers Workers’ Compensation Trusts in eight distinct areas of trade in addition to healthcare, including: contracting, wholesale & retail, transportation, real estate, manufacturing, public entities, cemeteries and auto dealers.

Back to All News

Workers’ compensation provider CRM offers new insurance program for California health care workers

October 5, 2004

(Irvine, CA) In an effort to help alleviate the shortage of affordable workers’ compensation insurance for California’s sizable health care industry workforce, Compensation Risk Managers (CRM) has begun offering coverage to health care workers through a new program called Healthcare Industry Self Insurance Program of California (HISIP).

HISIP was designed to serve employees of nursing homes, hospitals and other related healthcare facilities and institutions throughout California. The program is expected to save employers as much as 20-40 percentcompared with current State Compensation Insurance Fund rates.

A group self-insurance program, HISIP was created by CRM to help keep the rising costs of workers’ compensation insurance under control for California health care workers without sacrificing safety and claims services.

HISIP was created with the participation of two core membersThe two companies that have contributed a total of $3,325,028 in written premiums to help launch the program and provide workers’ compensation insurance for the 1,087 workers they collectively employ.

“With the rising costs of both workers’ compensation insurance and health care greatly contributing to California’s financial problems, we believe CRM’s new HISIP program will impact the bottom line for each of these industries,” said Martin D. Rakoff, CEO of CRM. “CRM has already been successful at attracting customers in many other industries through innovative and prudent underwriting guidelines, cost savings products and the superior risk management of its group self-insurance programs.”

HISIP has contracted with Health Care Facilities of America (HCFA) to act as a field consultant for the program by providing sales and marketing services. HCFA is a privately held workers’ compensation brokerage and risk-management firm that has been committed to researching and developing products that serve the needs of healthcare clients since 1998. The firm maintains offices in Rancho Cucamonga, Calif.

With regional offices in Irvine, Calif., CRM maintains a fully staffed Loss-Control department with certified safety professionals that offer support to program members. CRM offers group self-funded workers compensation programs for most major industry sectors – including health care workers – through 12 separate programs or trusts in New York and California.

Earlier this year, CRM reported results that show gross written premiums of $125 million, representing an increase of 27 percent from the previous year.

Back to All News

Become a Member

Become a Broker

2515 South Road, 5th Floor • P.O. Box 1999 • Poughkeepsie, NY 12601 • 1-877-452-4102 • Copyright CRM 2007-2008