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We Help Our Members Reduce Their Cost Of Insurance

1. An established record of helping members reduce the frequency and severity of losses - (where the real ball game is).

   Accountability of each member to produce results. The stated objective for new members is to reduce the loss rates by at least 50% over the first four years.
   

   WC claims frequency per 200,000 manhours has dropped from 1.71 in 1998 to .94 in 2006, compared to the national average of 2.4 in 2006, which is the latest year this information is available.

   Specific benefits to consider in this category:
   
   
   1. Safety
      
      
   1. Reduce existing losses by 50% in no more than four years
   2. Reinforce best practices
   3. Continuous improvement
   4. Benchmarking with the best
      
      
   2. Contract Documents
      
      
   1. Review options for improvement
   2. Develop formal contract point positions
   3. Educate appropriate personnel
   4. Subcontract compliance audits
      
      
   1. Review flowchart & responsible personnel
   2. Review subcontract checklist
   3. Provide options for automation
      
      
   5. Owner contract reviews
   6. Develop subcontract agreements and purchase orders by state
      
      
2. Real control over most of the claim management process.
   

   "Control" includes (a) selection of the attorney, (b) participation on the ACIG SWAT team responding to serious accidents, (c) quarterly meetings of all key parties to manage the action items on cases, (d) concurring on whether to pay or not pay disputed claims.

   Specific benefits to consider in this category:

   1. Claims
      
      
      1. Allocated loss expense management
      2. Care taken with key owners/customers
      3. Right to hire/fire primary claims adjuster
      4. National medical advisor
      5. Insured control of reserving process
      6. Claim/Safety workshop
      7. On-site training
      8. In-house liability unit
      9. Networking
         
         
         
3. Capture of underwriting profit and investment income normally earned by insurance underwriters and user friendly financial systems.
   

   Over the last 10 years (1997 to 2006), ACIG's members captured $94 million of underwriting profit and investment income. In addition, members enjoyed $289 million in retro and other returns.

   Specific benefits to consider in this category:

   1. Financial
      
      
   1. Quarterly financial reports
   2. Realize economic benefits of excess layer - equal to primary program benefits.
   3. Realize economic benefits of operating profits of insurance company on the primary program
   4. Documentation of insurance costs to owners
   5. Frictional expense management
      
      
4. Deductibility of premiums.

   Based on ACIG's tax advisors' understanding of the current tax rules in this area.

5. A long term, stable market with an underwriting policy based on actual loss experience.

   ACIG controls its own destiny with its wholly owned insurance companies that are licensed in a total of 49 states, covering over 99% of the premiums written.

6. Group purchasing power.

   With estimated year 2007 revenues of $12 billion, ACIG's members are collectively able to negotiate more competitive service agreements and re-insurance programs.

7. Coverages designed for the unique exposures of the construction industry.

   Since ACIG retains approximately 99% of the premiums generated each year for the first $3 million of workers compensation layer of risk and the first $2 million layer of liability risks, any key decisions on the scope of coverage to be provided are approved by our members, not outside parties.

8. Networking with other World Class Contractor Members.

   ACIG's annual Best Practice Workshop, Autumn Risk Management Workshop, Spring and Fall Claims/Safety Workshops and Annual Meeting afford great opportunities to exchange ideas.

   1. Networking
      

      Specific benefits to consider in this category:

      1. Association of select contractors with like philosophies
      2. Insights into risk management best practices
      3. Benchmarking
      4. Help maintain focus/positive peer pressure
      5. Positive success examples
      6. Interaction between like layers of management, i.e., safety supervisor to safety supervisor
         
         
9. Access to specialized risk management services.

   Concentrated services focused on a limited number of members.

   ACIG has assembled a cadre of seasoned construction insurance industry professionals, with a high sense of urgency, who work in partnership with our members and their agents.

   Specific benefits to consider in this category:

   1. Strategic Planning in Risk Management
      
      
      1. Set goals
      2. Develop action plan to achieve
      3. Monitor results
         
         
   2. Educational Programs
      
      
      1. Bootcamp
      2. Project managers
      3. Estimators
      4. Field force
      5. ACIG shareholders annual meeting
      6. Annual risk management conference (mid-year)
      7. Two Safety/Claims workshops each year
      8. Focused task forces
         
   
   
10. A leading-edge risk management program for analyzing and handling emerging risks and risk management issues.

    As new issues arise, ACIG's contractor ownership structure ensures that ACIG will respond in the best interest of its owners and agents. . . .a comforting thought!