OSBIE refunds $10.79M to members of the pool
Jim H. Sami, CEO, OSBIE
Refunds reliant on investment income
The investment income on OSBIE’s funds has had another banner year. This has enabled our Board of Directors to authorize a significant refund of $10.79M to members of the pool.
As everyone knows, the bull market has had the longest run in history and it is safe to assume that this will not continue indefinitely. “Members need to understand the role that investment returns play. We price our premiums without any profit margin factor; if the funds invested outperform, we are in the enviable position of refunding members. This year, our Board of Directors approved a 40% premium refund on the Liability and Auto lines and a 10% refund on the Property line. This is excellent, but not guaranteed going forward. Nonetheless, we are very proud of the fact that we have been able to refund 30% of all premiums paid over the last 5 years,” says Jim.
OSBIE adheres to a conservative investment policy which aims to hold steady in turbulent times. OSBIE’s goal is to maintain healthy capital levels which ensure long-term sustainability.
Capital strength allows for less reliance on Reinsurance
In a turbulent economy, we remain financially secure thanks to our prudent investments and our solid Guarantee Fund. Despite the significant premium increases that the commercial markets are offering, we provide members of our pool with rate stability thanks largely to our ability to self insure and/or carry high self retention limits. This reduces our reliance on the commercial Reinsurance market with its volatile rates. As such our rates for 2022 are actually seeing declines of 8.2% on the liability line and 5% on the auto line while most other lines remain unchanged.
OSBIE Poised for the Future
The current pandemic has provided OSBIE with an opportunity to explore the various ways in which we can continue to provide excellent service to our members while adapting to the ever-changing environment. “Our employees are our most valuable asset. OSBIE is an employer that is evolving to the workplace of the future which will support us in attracting and retaining a skilled and talented workforce. We will be continuing to leverage technology to provide products and services to support our members’ evolving needs and the organization’s Global Ends,” says Jim.