Evaluating Retro Groups

How much is the group risking?
Washington Manufacturers Council chooses, in advance, a Maximum Premium Ratio (MPR), which establishes a limit on retro assessments, regardless of how high claim costs end up. These “risk levels” can be as low as an extra 5% of Standard Premium (1.05 MPR), or as high as an extra 100% of Standard Premium (2.00 MPR). Many retro participants are so focused on the potential refunds that they forget about the potential for assessments. Washington Manufacturers Council takes steps to safeguard against risking more than the group can afford to be assessed if the group doesn’t perform well. Our current MPR is 1.20.

How many years has the group been enrolled?
Washington Manufacturers Council has been enrolled since 1991.

What has been the average percentage refund (or assessment)?
WMC has never received an assesment. The Average refund is 25.0% over the last five years.

How are refunds/assessments distributed among group members?
In group retro, L&I calculates an aggregate refund or assessment for the group as a whole, then sends one refund check or assessment notice to the Washington Manufacturers Council ; the Washington Manufacturers Council distributes the refund or assessment among our members. Washington Manufacturers Council distributes refunds on a merit-rated basis, in which group members end up with a varied percentage of the group refund (based on performance).

When will distributions be made?
For each program year the first retro “adjustment” Washington Manufacturers Council receives from L & I is 10 months after the coverage period ends. Washington Manufacturers Council distributes the refunds in July. The third (or final) adjustment is made two years later.

What are the association membership dues and retro administrative fees?
Washington Manufacturers Council participation fee is 20% of the group retrospective rating adjustment.

How are refund dollars being handled?
Washington Manufacturers Council provides group members a written statement at the time of distribution of refunds or assessments. The statements are complete and concise and show how the group as a whole performed, as well as how the member’s share of the adjustment was calculated. Refunds held in reserve are accounted for with interest accrued returned to the employer.

What services does the group provide to its members to promote accident prevention and claims management?
Washington Manufacturers Council has a full time Certified Safety Professional (CSP) and a full time Associate of Risk Management (ARM) on staff. Educational and training opportunities are available on a monthly basis for our member employers. Each member is assigned a claims executive who has a maximum case load of 75 time loss claims.

What (if any) underwriting criteria does the group use?
Washington Manufacturers Council considers number of years in business, experience factor, past retro “loss ratios”, claim frequency, severity rates, and loss control programs put in place. Washington Manufacturers Council also emphasizes educating and motivating our members during the year to reduce costs for an overall greater performance.

Can the group provide you with references?
Washington Manufacturers Council has an outstanding record of performance and will provide references at any time.

Does my business risk class qualify for the WMC Retro group?
Check to see if your business risk class qualifies by reviewing our list of acceptable risk classes, click here.

What is the enrollment deadline?
Contracts and applications must be received no later than the 15th of the month preceding the quarter (June 15, September 15, or December 15).

When you decide to enroll with Washington Manufacturers Council, you will be asked to sign two documents:

1. An Application for Group Membership, a single-page agreement generated by L&I on which is printed the Washington Manufacturers Council name and address, our retro group number, application deadline, coverage period, and general provisions of enrollment.
    
2. Washington Manufacturers Council contract, which provides details of membership requirements and administration.