I’ve been thinking a lot lately about our award-winning safety reward programs and captive insurance. Specifically, those member-owned group captives that have been created to offer mid-size and large motor carriers flexibility and cost savings when insuring operating risk (workers compensation, general & auto liability, physical damage, truck cargo coverage…). In simple terms, the beauty of a group captive is that member companies in high-risk industries such as trucking or solid waste can spread and share common risk with other captive members. Members have a cooperative interest in controlling costs, prioritizing safety, eliminating critical events, reducing accidents, incidents, claims and losses. When successful, the captive members benefit through reduction in annual premiums, a healthy reserve loss fund, and the potential return of capital back to group captive members. In 2023, “truck insurance premiums grew by 12.5 percent to $0.099 per mile after two years of negligible change.” ¹

In a previous blog post titled “Safety Rewards – The Multiplier Effect”, I mentioned that many companies in high-risk industries are committed to safety with robust safety programming in place. Several include safety as a core value. Unfortunately, many miss the rewards component which provides an opportunity to further drive engagement, promote group goals, and reward individual behavior. People have an inherent need to be recognized!  Integrating a properly structured rewards program – one that features tangible awards as the rewards currency - will provide the stimulus and energy that encourage employees to perform at their best.

So back to captive insurance. Why don’t the brokers/consultants/managers of transportation group captives suggest recognition & reward programs be adopted by group captive members? In a group captive, each member is technically an insurer, so all share a common interest in being safe. As a matter of fact, if a company interested in joining a group captive doesn’t have a satisfactory safety record, that company will most likely not be accepted into the group.

Insurers that offer employee health insurance commonly offer reward programs to clients that incentivize enrolled employees for health & wellness related activities (i.e. getting a preventive exam, online health assessment/screening, health coaching, or for self-reported wellness activities such as steps, weight loss, smoking cessation).  If we’re willing to incentivize and reward people for being healthy, why wouldn’t we do the same to help keep our valued employees safe? Sure, some brokers/consultants/managers help with safety training, seminars, and videos, but I don’t know of any offering a dedicated rewards platform focused on safety featuring pledges, surveys, quizzes, news, bulletins, leaderboards, group segmentation, a social wall, e-cards, and an awards catalog with thousands of tangible and experiential awards.

The adoption and implementation of a rewards program can only strengthen the group. The cost to create, design, and implement a world-class safety rewards program is minimal… especially when spread across the group captive membership. Yes, annual member premiums will initially increase to cover the cost of points allocated to participants enrolled in the program; however, fewer accidents translate directly to fewer claims (small, large, & NUCLEAR), lower premiums, and employees who always return home safely to their families. Gallop’s 2024 study on “Engagement at Work and Organizational Outcomes” shows that companies with highly engaged employees (those ranking in the top 25%) have 63% fewer safety incidents (accidents), 78% less absenteeism, 21% - 51% lower turnover (varies based on high turnover vs. low turnover organizations), 68% higher wellbeing (thriving employees), and are 23% more profitable when compared with companies that have employee engagement scores ranking in the bottom quartile.

I’d love to hear from any captive insurance companies and/or members of transportation group captives!

¹Source: The American Transportation Research Institute (ARTI) 2024 Analysis of the Operational Costs of Trucking.

About All Star Incentive Marketing… For nearly 50 years All Star Incentive Marketing has provided its clients with solutions that help maximize the value of human capital. By providing world-class employee engagement solutions in the form of recognition and reward programs, All Star can motivate behavior change and, in the process, create more effective and loyal employees and customers. When deployed with employees, these programs improve safety, wellness, retentions, sales, training, customer service, and communications. When deployed with customers, these programs improve customer retention, sales, and profitability.