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California’s Largest Self-Insured Group Surpasses $1.3 Billion in Covered Payroll
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California Restaurant Mutual Benefit Corporation Expands to Include Country Clubs as Members
Spurred by new member growth in September, the California Restaurant Mutual Benefit Corporation (CRMBC) has eclipsed the $1.3 billion covered payroll mark. California’s largest self-insured group (SIG) now has a total member locations count of 3,100.
And for the first time since CRMBC’s inception in 2005, California country clubs are included in the new member total. The adoption of new regulations for SIGs in 2009 allowed California groups to file underwriting plans to include new businesses whose risk exposures were similar to those of the existing group. After a CRMBC proposal to accept qualified country clubs was approved in May, several clubs requested membership. Forty country clubs have now joined CRMBC, including Bermuda Dunes (home of the Bob Hope Golf Classic), Indian Ridge, Mayacama, Old Ranch Country Club, Rancho LaQuinta/Andalusia, Shady Canyon and The Lakes.
CRMBC Board Chairman David Mitchell said, “We’re pleased to welcome some of California’s premier country clubs into the CRMBC family and expect to see many more in the coming year.”
“We are constantly searching for ways to keep costs down,” added Buzz Radoff, General Manager and Chief Operating Officer of The Lakes Country Club. “That is absolutely essential in today’s economic environment. With CRMBC, we are getting good initial pricing with exceptional long-term value. And the best thing is that their programs will help keep our employees safe and support injury recovery. Safety should pay in every way.”
Since its launch on January 1, 2005, CRMBC’s membership has grown tenfold and members have experienced a rate reduction of over 60%. Program manager CHSI has reduced administrative costs for CRMBC by 62% and the program has declared $18 million in returnable funds not needed for claims and expenses. Despite this return of surplus, CRMBC, in compliance with California regulations for self-insured groups, continues to set aside higher reserves for claims expenses than insurance companies.
CHSI Senior Executive Vice President Joe Burgess added, “The future of workers’ compensation in the traditional insurance market is very uncertain for California employers right now. Economic conditions are tough enough but all the signs point to rising costs for employers. We are confident that CRMBC will continue to deliver price stability to its members along with a long term net value that will not be beaten.”
