PEO Risk Management: THE BIG PICTURE
There is a certain art to PEO risk management. It’s easy to immerse yourself in the details of your programs, looking in really close to see the minute brush strokes and subtleties of the composition. While it is absolutely necessary to do this, it often helps, however, to step back and take a look at the big picture, put everything in context.
And the big picture for PEOs is pretty big. Developing a long-term strategy for managing all the risks the PEO must manage requires context.
Putting PEOs in the context of the various insurance markets, there is now a limited but stable market of carriers who work with PEOs. Through, for example, the market challenges of the early 2000s in workers’ compensation, PEOs learned underwriting discipline, and are now better poised to respond to changes in the marketplace. PEOs can synchronize these advantages with their larger business strategies, for example, matching investment in loss control to the client base or leveraging the workers’ comp program in support of acquisitions.