There’s Safety – and Savings – in Numbers

By Jack Ogden, Senior Marketing Specialist

By Jack Ogden, Senior Marketing Specialist

I’ve been working closely with insurance agents for 16 years. I get a lot of satisfaction from telling them about products and services that benefit their clients. I get even more satisfaction when I tell agents about products and services that benefit their clients and them. Safety groups are a good example.

A safety group is a group of employers in a similar industry who purchase their workers’ compensation coverage together. Think of it as strength in numbers.

Each group member gets a premium discount based on the group’s overall premium, regardless of their individual premium size.  Safety groups are a great way for small employers to compete on a level playing field with large employers that have more money and resources.

Because safety group members operate in the same industry, their employees face similar on-the-job hazards. Insurance carriers can design custom safety services that address those unique hazards. By reducing workplace accidents, employers can further reduce their workers’ compensation costs. They may also have the potential to earn dividends from the carrier.

Safety groups are a good business proposition for agents, too. The premium discount that comes with joining a group is attractive to any business looking to cut operating costs. Once the client has experienced the custom workplace safety services and earned a dividend or two, they are more likely to stay in the group and, in turn, remain loyal to the agent.

In marketing, we spend a lot of time talking about differentiators. Safety groups are an opportunity for agents to set themselves apart from the competition. They also help small employers level the playing field with larger employers. Simply put, there’s safety and savings in numbers.

About the author

Jack Ogden is the safety group manager at Texas Mutual Insurance Company. He is a certified insurance counselor with 16 years’ experience in workers’ compensation. Jack works closely with insurance agents to help them get the most value out of their partnership with Texas Mutual.

Texas Mutual Serves up $1.4M Dividend to TRA Safety Group

(L-R) Bob Barnes, chairman of Texas Mutual's board of directors, and Ron Wright, president of Texas Mutual, present a $1,387,241 dividend check to Richie Jackson, CEO of the Texas Restaurant Association.

Texas Mutual Insurance Company announced today a $1,387,241 dividend to the Texas Restaurant Association (TRA) safety group. The dividend was based largely on the group’s overall loss ratio. Bob Barnes, chair of Texas Mutual’s board of directors, recently presented the check to TRA CEO Richie Jackson at Texas Mutual’s headquarters in Austin.

“The restaurant industry is an economic engine for Texas,” said Barnes. “Restaurants pump $36.6 billion into the economy and employ more than 1 million people. For every $1 million spent in restaurants, the state benefits from nearly 30 additional jobs. We hope this money helps TRA members continue to grow their businesses during challenging economic conditions.”

Members of the TRA safety group have shared in more than $17 million in group dividends since 1999.

Safety group dividends are separate from the $155 million in individual policyholder dividends Texas Mutual distributed in 2011. Since 2000, the company has injected more than $1 billion into the Texas economy through its group and individual dividend programs.

“Between individual policyholder dividends and safety group dividends, Texas Mutual makes participating in the workers’ compensation program in Texas a good business decision,” said Jackson.

Unlike publicly traded insurance companies, mutual companies are owned by their policyholders. Dividends allow Texas Mutual to share its financial success with its policyholder owners.

In addition to potential dividends, TRA safety group members get discounts on their workers’ compensation premiums. They also have access to workplace safety materials designed for the restaurant industry.

Texas Mutual notes that past dividends are not a guarantee of future dividends, and the Texas Department of Insurance must approve all dividends.

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