Report on Self Insurance Groups
enhance the protection against underfunding, the need for employer assessments, or defaults. On the contrary, it would probably expose small SIGs to the destabilizing effects of predatory price competition by larger SIGs and insurance companies.9 Unless it is demonstrated that wider public disclosure will actually enhance the security of SIGs, however, the risk of harm from public disclosure of SIG financial information appears to outweigh any potential benefits.
Although individual SIGs’ financial information may be kept confidential, the public interest is served by public access to certain information including:
The identities of members of each SIG so that every self insured employer’s compliance with Labor Code Section 3700 is publicly documented.
The identities of the group administrator and the claims administrator(s) for each SIG.
Aggregate statistical data on claims experience and administrative costs, comparable to the aggregate statistical data on insurer experience and costs which are published by the WCIRB but simplified commensurate with the smaller scale of the SIG program and the necessity to protect individually identifiable information.
The status of each SIG’s compliance with key requirements including but not limited to filing reports, funding loss reserves, and paying security deposits.
9 The argument for protecting small SIGs may not hold true for large SIGs that are on a more equal footing with insurers. In fact, consideration may be given to whether sufficiently large SIGs should be required to become mutual insurance companies rather than self insurance groups.