About PEC
Fed up with high premiums, instability and capacity issues in the workers’ compensation market, a group of regional firms decided to find a better solution for their workers’ compensation coverage.
JFC Staffing Associates (staffing specialist), and Ira G Steffy (steel fabricator), mutual clients of E.K. McConkey and Pro-Active Risk Services, worked together to form what is now known as PEC. PEC's shareholders are businesses with a strong desire to control their workers’ compensation costs. PEC, in turn, owns a segregated portfolio cell insurance company, which is domiciled in an offshore jurisdiction. The segregated portfolio cell company structure offers its shareholders the potential to receive preferred shareholder dividends with favorable loss results. The key to the success of the PEC segregated portfolio cell company is to partner with other insureds that are committed to proactive claims management and safety programs. The opportunity to participate in underwriting profits is a key component to the program.
This program is underwritten and serviced by Eastern Alliance Insurance Group (EAIG). EAIG is a premier specialty underwriter of managed care worker’s compensation products and services. EAIG, located in Lancaster, Pennsylvania has grown from a startup organization in 1997 to the 10th largest writer of workers’ compensation in Pennsylvania by providing an unparalleled dedication to customer service.
Eastern Alliance provides a dedicated claims adjuster to the program, in addition to ProActive Risk Services, which improves accountability and allows for better relationships between the insureds, claimants and the insurance company. The risk management representative assigned to the program is highly respected and is already acknowledged to have significantly improved the safety programs for each participant. Dennis Rineer, President of Ira G Steffy adds, “We thought we had a good safety program before working with Eastern Alliance, however their risk management representative, Randy Watts, opened our eyes to areas in which improvement was needed in our programs. Our own people are more knowledgeable from a safety standpoint and the results are truly measurable.”
PEC’s segregated portfolio cell company was approved to conduct business effective March 1, 2004. Through five months of business, PEC’s program has produced loss ratios well below industry averages. “All the companies within PEC have performed well because we have explained to our staff members that we must work together to make it profitable”, according to Rineer. “As we lower our workers’ compensation expenses, employees realize that there is more money for salary increases, not to mention we’re providing a safer working environment for our most coveted asset, our employees.”
Another key, according to Chris Zampogna, General Manager of JFC Staffing Associates, is to find trustworthy partners. E.K. McConkey has been the insurance agent for all three members for quite some time. “They pulled the deal together,” says Zampogna. “They presented us with the opportunity to partner with Eastern Alliance Insurance Group, ProActive, and others. They are solid business partners.”
Steve Buterbaugh, Vice President of E.K. McConkey & Co., says, “EAIG has been exceptional! We place a significant amount of business with them and have been impressed with their proven Alternative markets model for similar programs. The E.K. McConkey agency is proud to represent a company that provides such attention to claims, provides superior risk management services and is committed to quality service. According to Zampogna, “Not only has their claims handling been great, the Company has also bundled the program services, which has led to a competitive expense structure. In the past, we have researched other options and we believe this program offers us the ability to control costs and produce long-term profitable results.”
PEC is focused on growing the program. Employers with solid financials, strong commitment to safety, minimum 75 employees and those who are currently paying over $150,000 per year for workers’ compensation are being targeted for the program.