How does the TEIP risk pool differ in operation from an insurance company?
The TEIP risk pool is a plan of self-insurance in which the participating customers (we refer to customers as “affiliates”) share in the losses, expenses and profit of the risk pool. If losses and expenses are controlled, operating surplus is used to reduce future premiums. With traditional workers’ compensation insurance, profits are given to stockholders, rates continually increase and the policyholder is forced to pay higher premiums. Risk pool participants have more control over their costs than policyholders purchasing insurance.
