August 6, 2012

According to the state-chartered carrier's annual report on Friday, New York State Insurance Fund increased its share of the marketplace from 31% in 2010 to 38% in 2011, although its net income dropped drastically from $400.4 million in 2010 to $5.4 million in 2011.

NYSIF reported a $539.7 million underwriting loss while generating $597.5 million in investment income. NYSIF also paid out $78.6 million in dividends to policyholders in 2011, almost double that of 2010.

NYSIF's increased share in the marketplace means that their net written premium increased from $1.31 billion in both 2009 and 2010 to $1.5 billion in 2011. However, total surplus declined from $2.82 billion in 2010 to $2.80 billion in 2011.

At the end of 2011, 166,087 employers were insured by NYSIF.

NYSIF is continuing to grow and it currently provides workers compensation insurance for well over a third of New York State employers. This does not bode well with brokers and private carriers who feel that NYSIF has been given monopolistic powers that prevent real competativeness in the marketplace. Chances are that you currently have clients who are already among the 166,087 New York employers insured by NYSIF and you have other clients who will soon be joining them through poor experience. Through workers compensation premium recovery, you can reduce your clients' mods to take them out of the State Insurance Fund or prevent them from having no options other than the State Insurance Fund. Not only will you, as the broker, maintain current cilents and win new prospects, you will continue to earn commissions placing business with private carriers, as well as earn first-year and renewal commissions through partnering with us in workers compenstion premium recovery.