john-karlenOur 2013 financial results have been finalized with our actuary. The good news is that through loss control efforts and claims handling by our policyholders, MTMIC made a small underwriting profit for the year. A small underwriting profit is in line with a primary company goal of keeping our customer’s rates as low as possible. Additionally with some conservative investment of company funds, we added to that bottom line. Sometimes I am asked where do our mutual profits go? There are only two places: 1) a company surplus account and 2) policyholder dividends. Given the size of the profit, we have put the money in the company surplus account. This account provides a buffer if we have a year where the results do not generate a profit – that is, losses exceed our collected premium for the year.

In the workers’ compensation insurance business good results just don’t happen. It takes a wide range of people involved. It takes mutual policyholders who worry about loss control and their individual company claims experience. It takes professional insurance staff providing loss control support services to our policyholders. By the way, at MTMIC, we have one full time field loss control consultant for every 240 policyholders. This is a commitment and focus that no other Michigan insurer can match. Beside the focus of the staff, we provide safety training videos, training documents, ergonomic tools and written safety programs in the tool box to help our policyholders.

focus-on-efficiencyMatching the loss control focus is our claims staff. The MTMIC claims staff is focused and frugal. They look for every questionable claim and watch the claim dollar payments as if the money was theirs. This approach assists our policyholders in controlling their claims dollars and workers’ compensation premium rates.

At the February Board meeting, we updated our three year business plan. I am pleased to report, going forward we will do what we have been doing. Provide outstanding workers’ compensation services to Michigan businesses at the lowest possible rate, consistent with long term financial stability.

Please call me or any of our staff when we can help. For 37 years we have been there for Michigan businesses.