Workers Compensation Large Deductibles & New SIGMA Resources

Timothy L. Coomer, Ph.D.

I spent some time this week outlining a concept for my PhD dissertation. It concerns the decision process related to selecting a workers compensation large deductible policy. I’m still a long ways from getting a formal proposal written, but I loved the brainstorming this effort created in the office this week.

If you work with workers compensation large deductible plans, I would like to hear your feedback. Below are some questions I am considering.  What do you think?

You can respond to these questions using two quick options. First, click here, and you will be linked to an online survey where you can respond. Second, if you prefer just to email me your thoughts, email

1) When choosing between a guaranteed cost and a large deductible option, how often do most employers consider, as part of the decision process, an actuarially determined loss estimate of the retained losses associated with the large deductible?
2) As part of a more in-depth decision process, how often do employers consider a measure of the potential loss variability associated with the large deductible option? In other words, is a confidence interval analysis or some representation of the spread of risk considered in the decision?
3) In your opinion, how capable are decision makers (CFO/Risk Manager) at incorporating analytics that provide expected loss estimates and confidence interval analysis into their decision making process?
4) In a few sentences, where do you see the state of analytics as applied to the selection of a large deductible option?

All responses are strictly confidential. However, I will summarize, in a general format, the results and feedback and publish this in a future blog.

I believe, and hear it from a variety of industry contacts, that workers compensation large deductibles are going to be a significant area of growth in the months and years ahead. I will be providing more information, research, and ideas on this topic in this blog.

SIGMA Resources

On another topic, we have built a vast library of resources for insurance professionals. For access, please go to

Our channel:

As always, please feel free to contact me directly at with questions or comments.

Leave a Reply

Your email address will not be published. Required fields are marked *


Recent Posts

Adapting Your Captive for a Shifting Risk Landscape
In a recent article published by Captive International, Michelle Bradley and Enoch Starnes discuss, “Adapting Your Captive for a Shifting Risk Landscape". In it, they examine how a company’s risk profile can shift dramatically and without any warning. The impact of a global pandemic, a rising ...
Read More
Navigating Legislative Changes for Healthcare Entities
January is here, and with it comes the need for many companies to complete their annual actuarial report for retained liabilities. If the past several years are any indicator, legislative changes and social inflation could significantly impact the loss reserves and projections prepared in these repo...
Read More
SIGMA's 2023 Highlights
Despite market uncertainty and numerous obstacles in the insurance industry this past year, the SIGMA team has persistently directed its focus towards growth, education, and delivering exceptional service to our clients. Fortunately, our dedicated efforts in these areas have not gone unnoticed, resu...
Read More
Captive Market Trends, and Predictions for the Year Ahead
Michelle Bradley and Enoch Starnes were recently featured in an article by Captive Insurance Times titled, "Going for Gold". Along with other industry leaders, they discuss 2023's captive market performance, trends and developments, and share predictions for the year ahead.  In regards to the y...
Read More

Subscribe to Our Blog

hello world!
Copyright © 2023 – 2024 SIGMA Actuarial Consulting Group, Inc. All Rights Reserved.
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram