NCCI Study Validates Role PEO's Play in Improving Workers' Compensation Experience

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Press Release

NCCI Study Validates Role PEO's Play in Improving Workers' Compensation Experience

St. Petersburg, Fla. – July 12, 2013 – The National Council on Compensation Insurance (“NCCI”), the nation's largest provider of workers compensation data and the actuarial rate-making bureau for most states, recently released a study that concluded that Professional Employer Organizations (“PEOs”) have a positive impact on the nation’s workers’ compensation system and the employers and employees that they serve.  The study was authored by the Chief Economist of the NCCI, Harry Shuford, and presented at the NCCI’s Annual Issues Symposium.

Across the board in all categories, PEOs had the same or better loss ratios than non-PEOs.  Additionally, the study found that PEO’s manage catastrophic claim outcomes ~45% better than the “traditional marketplace”.  According to Jay Starkman, CEO of Engage PEO, a leading professional employment organization providing HR outsourcing solutions to small and mid-sized businesses, the findings of the NCCI study validates what industry professionals have known for years - claim outcomes improve when businesses work with a PEO.  Additionally, one of the key findings of the study is that, due to the enhanced management of workers compensation costs and outcomes that the PEO model provides, outcomes are 33% more predictable in the PEO model.[1]

“PEOs like Engage help small and mid-sized businesses adhere to a wide range of safety practices they potentially wouldn’t have the expertise and experience to implement on their own,” said Starkman.  “With an HR team including lawyers, we’re able to provide our clients with compliance guidance, ensuring that both business owners and employees can conduct work in a safe environment, while reducing liability for the company.”  

“The report is a game-changer for the industry in that it strongly supports the PEO model and improves the industry’s image and relationship with insurers,” said Paul Hughes, founder and chief executive officer of Florida-based Risk Transfer Holdings.   “When the NCCI comes out with a study like this, people listen.”

NCCI is the nation's most experienced provider of workers compensation information, tools, and services. Through data collection, research, analytical services, tools, and overall commitment to excellence, NCCI helps foster a healthy workers compensation system.  To learn more about the study, visit  

About Engage PEO

Engage PEO delivers comprehensive HR solutions to small and mid-sized businesses, sharpening their competitive advantage. Comprised of the industry’s most respected veteran professional employer organization executives, certified HR professionals and attorneys, Engage PEO provides hands-on, expert HR services and counsel to help clients minimize cost and maximize efficiency for stronger business performance.   The company’s superior service offering includes a full range of health and workers’ compensation insurance products, payroll technology and tax administration, risk management services and best-of-breed technology as part of an extensive suite of HR services.  For more information visit

[1] According to the study, at 42 months after inception, the development factor for claims in the PEO model was 1.27, versus 1.41 for the traditional market.

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