Missouri Restaurant Association Insurance Trust
The Missouri Restaurant Association Insurance Trust is pleased to provide qualified Association members with money saving, soundly managed workers' compensation coverage for their Missouri operations.
Formed under the self–insurance laws and regulations of the Missouri Division of Workers' Compensation, the MRAIT program — now in its 12th year of operation — brings members the advantage of self–insurance typically afforded only to large companies.
Why Has Your Association Formed the MRAIT Self–Insured Program?
►To protect members from "out of control" increases in insurance expenses.
Workers' compensation costs are increasing rapidly. Your participation in MRAIT offers a real opportunity to take control of these expenses.
►To save on insurance premiums.
As an MRAIT member, you can improve your profits by controlling workers' compensation expenses. By holding the line on escalating overhead, you will gain competitive cost advantages. The trend in workers' compensation costs in Missouri and nationally is sharply up...and getting even worse.
►To offer participants the benefit of owning your own plan.
You and your fellow Association participants own and oversee the plan with aggressive claims management, and no overgrown insurance bureaucracy. The plan retains interest income. Participants are owners of the program — not just premium payers.
►To aggressively manage risks, not just pay claims, and to provide the right kind
of service.
You will be kept informed on claims and have a chance to be involved in claims management and settlements. Injured employees will be served quickly and fairly, to avoid unnecessary litigation. Questionable or fraudulent claims will be firmly resisted.
►To improve coverage availability.
The market for workers' compensation is quickly "drying up," with many businesses forced into the assigned risk pool, with questionable service and heavy surcharges. MRAIT is an invaluable alternative to the "traditional" insurance market.
►To provide a specialized loss control program for participants.
Our safety specialists work as partners with members to assure savings on claims and costs.
How Does MRAIT Work?
►Self–Insured workers' compensation plans are approved by the Missouri
Division of Workers' Compensation.
MRAIT is carefully regulated and monitored by the Division, to ensure financial stability and enduring protection for you, the employer, and for your employees.
►A Board of Trustees, made up of MRAIT participants, oversees all activities.
Members are owners of the program, with voting rights, and participation in savings. In essence, participants own their own form of insurance company, with operations limited to MRAIT's purpose: providing cost effective workers' compensation coverage exclusively for its members.
►MRAIT retains a professional plan administrator to provide underwriting, claims,
marketing and management services.
This firm, Alternative Risk Services, L.L.C. (ARS), is one of the Midwest's largest administrators of self–insurance programs, with an outstanding track record. In addition to ARS management support, the program is protected by reinsurance on both large individual claims and total claim expenses.
►Participating members set eligibility and underwriting standards.
These underwriting standards ensure that participants are good, safety conscious risks. Members will participate in a custom designed loss control program. With good underwriting, loss control, and lean, professional management, the plan will create the cost savings typical of self–insured programs.
►Claims are reported directly to Alternative Risk Services.
As a program member, you will have more input in the claims process than with "traditional" insurers. You will receive regular loss reports on your account, as well as periodic information from the Board of Trustees.
How Will The Program Save Me Money On Premiums?
Initial rates and premiums will be those approved by the Division of Workers' Compensation, just as with other insurance plans. But — you will then save through up-front discounts (rare in today's marketplace), and dividends based on good loss experience. And — this is important — your savings typically grow as the program "matures," with increasing participation and a decreasing cost structure.
►MRAIT has inherent cost advantages over the "traditional" insurance market.
Sales commissions, marketing and management expenses are lower, along with other overhead typical of large insurance companies.
►MRAIT operates with a lower expense structure.
There is no large overhead or expensive bureaucracy...just a lean, cost effective operating structure. "Profits" are returned to members, not to insurance company stockholders.
►Interest income on premiums and loss reserves is retained by the program, not by the
insurance company.
Investments will be conservatively managed for maximum safety, building "equity" over time for program participants.
►The overall cost of your workers’ compensation claims is lower.
Self–insurance programs historically show fewer claims and a lower per claim cost. Participants are owners of the program, with a commitment to the self–insurance philosophy. They typically operate more safely and with more financial discipline when the money they save is their own...
Conservative disciplined underwriting, and the commitment to self–insurance, typically lead to a better group of risks. Participation is limited to Association members who are committed to controlling their workers’ compensation costs. Therefore, claims and loss experience are more likely to be favorable.
Does Self–Insurance Work? What is the experience of these kinds of programs?
►Well-run self–insurance programs typically return savings ranging from 5% to 30% on
"standard" insurance premiums — and in some cases, even more.
That's why most large companies self–insure their workers' compensation exposures, and why an increasing number of trade associations are sponsoring plans like MRAIT.
While member assessments are a possibility, conservative management and solid reinsurance combine to limit the likelihood and effect of those. Historically, plans administered by Alternative Risk Services, L.L.C. have successfully resulted in savings for members without the need for additional assessments.
How Can I Take Advantage of the Association Program?
Contact the MRAIT administrator for further information. Get a cost comparison with your current insurance to decide whether the program is right for you.
Lorrie Ramseier
Alternative Risk Services, L.L.C.
P.O. Box 25935
Shawnee Mission, KS 66225
816.778.0758 Phone
816.587.4467 Fax
Outside Kansas City: 800-934-2671
Thank you for your interest in this valuable association benefit offered through MRAIT!