Reducing the Cost of Insurance


  1. An established record of helping Members reduce the frequency and severity of losses.
    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 1.84 in 2002 to .79 in 2018.

    Specific benefits to consider in this category:

    1. Safety
      1. Reduce existing losses by 50% in the first four years of membership
      2. Reinforce best practices
      3. Continuous improvement
      4. Benchmarking with the best
      5. Best-in-class networking
    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 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. Safety/Claims 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.
    ACIG provides the mechanism to recapture the underwriting profits and investment income generated by each Member and on a combined basis.

    Specific benefits to consider in this category:
    1. Financial
      1. Quarterly financial reports
      2. Realize economic benefits of pooled 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 2018 revenue of $19 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 $7 million of workers compensation layer of risk and up to the first $10 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 Practices Workshop, Autumn Risk Management Workshop, Safety/Claims Workshop, Legal Forum, Builders Quality Summit, ACIG University, Annual General Meeting, and various Quality Peer Groups afford great opportunities to exchange ideas.
    Specific benefits to consider in this category:
    1. Networking 
      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. Share in lessons learned
  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. Risk Management Bootcamp
      2. Project managers
      3. Estimators
      4. Field force
      5. ACIG Members annual meeting
      6. Annual risk management conference
      7. Fall Safety/Claims workshops each year
      8. ACIG University
      9. In-House Legal Counsel
      10. Best Practices
      11. Project Lifesaver (PLS) meetings
      12. Quality Peer Groups
  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 Members and agents. . . a comforting thought!