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A company can save big by shopping its mutual prevention


Alain Thériault

14 August, 2018 07:00

Jacques L. Archambault | Photo : Réjean Meloche

Lawyer specialized in insurance of work accidents, Jacques L. Archambault helps companies to check if the mutual prevention in which they are appropriate. Sometimes, a change of the mutual can save big.

A specialist in the field of pricing of the Committee on standards, equity, health and safety in the workplace (CNESST), Mr. Archambault, Archambault Group Council, has been one of the architects of the pricing regimes that were created from 1989 to 1999. Among these schemes, mutual prevention ” are an option-pricing, in which employers can avail themselves in order to reduce their contribution rate set by the CNESST “, says the lawyer.

Mutuals should normally group the companies according to their performance or their sector of activity. “In 2017, there were 105 mutual prevention in Quebec, which accounted for 29 803 employers,” said Me Archambault.

He explains that most of the schemes are operated by professional managers, but some are through employers ‘ associations. For example, The Group OHS of the automobile dealers of Quebec regroups several dealers.

However, not all mutuals do not realize equal performance (see table). In certain mutual insurance companies, companies whose experience is, however, without spot, must, however, pay contributions CNESST high, because of the overall experience of the mutual, note counsel.

“Join a mutual does not automatically mean a reduction in the premium of the company. This reduction depends on the results obtained by the members of your mutual. “

Be in a mutual too little performance might even be disadvantageous, according to him. “If the performance of the members of your mutual is less good than that of the industries are comparable (most of work-related injuries or costs), your rate could even increase,” warns the lawyer.

He explains that employers that perform better than the average of their mutual can the same be losers, as they could often do better in a mutual company more efficient and therefore more profitable. Employers less powerful than the average are the winners. They benefit from the good performance of the first at the expense of the economies that they ” leave on the table “, has shown the lawyer.

Me Archambault explains why an mho can come to disadvantage a company. “A manager must aggregate a sufficient number of employers to ensure that its mutual reaches full credibility in the eyes of the CNESST,” he said. Often, certain mutual insurance companies must search employers, more efficient with less to achieve this credibility. “

The adviser may act… before the end of September

Such a twinning, disadvantageous to the employers performance, it is sometimes even necessary to improve the performance of certain mutual insurance companies, when it would otherwise be desired. The pairing enables the manager of a mutual guarantee themselves an average “interesting and commercially competitive,” explain to Me Archambault.

“This is where the interests of the manager and those of its clients are no longer identical. They may even sometimes diverge “, he says.

“Are your customers well served by their mutual prevention CNESST ? “, said the lawyer, as a message to the advisors group insurance. “If, in its mutual, your client is a part of half performance, he responds might be due to the selection criteria of a better mutual, more cost-effective for him. “It is, however, less one for 2018 : the period for change of mutual by September 30 of each year.

For his part, Archambault consulting Group helps employers navigate the complex and opaque of the excellent opportunities that represents for them the world of mutuelles de prevention “, says its founder. It also does this in partnership with consultants in the group insurance that they recommend to clients.

Archambault consulting Group provides free search for the company, among 70 mutual prevention selected the seven best which it is eligible. “We will present to you, without charge, the additional savings that they could generate compared to your current situation,” he said. If the client decides to change a mutual, the firm will charge then a fee for the support in this process.

An essential service for the contractor

The offer of research and analysis is an essential service for the contractor, submits the counsel. According to him, it could spend weeks, or even months to search through a hundred mutual health organizations, without collecting in the end all the full information that would enable him to determine whether he might do better in another mutual.

“The mutual of prevention, it is complex and a large portion of employers are simply not. Without the information to enable them to make an informed choice, they follow the parade and are content with the savings that they receive, ” he says.

Despite their great potential for financial savings, mutuals sometimes hide inconsistencies, adds the lawyer. “Many companies pay too much in comparison to their risk profile, in addition to charge performance fees when they could do better,” he adds.

“Many of the customers I encounter are not able to see that they are not in the good for each other, that they could do better. The necessary information is confidential and distributed among the 105 mutuals currently in operation in Quebec. They need an advisor to find the best deal. ”

What is a mutual prevention

A mutual prevention is a grouping of employers who choose to engage in a process to promote the prevention of occupational injuries, rehabilitation and return to work of injured workers. They benefit from the following pricing related to the health and safety of work that reflects their efforts.

Thus, to join a mutual is supposed to enable the employer to obtain a greater personalization of the individual’s level of insurance, because of the consolidation of the collective experience. Each employer of the mutual company is assessed individually using the collective experience of the group to measure its performance, according to its results in the field of occupational accidents).

Employers that join a mutual accept, therefore, that their contribution CNESST be adjusted according to the average performance of the group. They hope to obtain a more important reduction of their dues, if the average is positive.

Source : CNESST and Archambault Groupe Conseil

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