NCCI Report Validates PEO Model, Challenges Perceptions

By David Dankwa, Senior ReporterPreliminary research by the National Council on Compensation Insurance challenges some long-held negative perceptions about professional employment organizations, including their role in the collapse of three workers' compensation carriers between 2009 and 2011. Authored by NCCI Chief Economist Harry Shuford, the report concludes that PEO claims experience as measured by loss ratios or claim costs relative to premium was no worse and was typically better than that of non-PEOs.   For instance, NCCI reviewed claim development for PEOs versus non-PEOs...