A.M.Best Study shows Self-Insurance Pools outperform Commercial Insurers

A study by rating agency A.M. Best has born out the effectiveness of self-insurance pools for well - managed groups. The report compared a five-year average loss ratio for 16 pools that were rated by Best's against their commercial insurance industry composite and found that the average loss ratio for the pools was 60.6% compared to 80.8% for the commercial industry.

In the report Best's highlighted some of the reasons for establishing self-insurance pools which created better than average results. These included a desire to gain control over the product and to stabilize premiums over the long-term. A commitment to the long-term was also cited as an important factor for long-term success.