Is Self-Insurance Still Delivering the Value It Once Did?
With Maine’s workers’ compensation rates at historic lows, now may be the right time to take a fresh look at the standard market.
The Market Has Changed
Maine’s workers’ compensation landscape has shifted dramatically over the past two decades.
- Workers’ comp insurance rates are down more than 75% since 1993.
- Workplace injuries have dropped by more than 50% statewide since 1993.
- The state approved an average 4.8% reduction in loss costs for 2026, continuing downward pressure on premiums
What that means:
The standard market looks very different today than when many organizations chose to self-insure.
Why Employers Are Reconsidering Self-Insurance
Self-insurance can make sense in the right conditions, but it also comes with volatility and hidden costs.
Common challenges:
- Unpredictable large-loss years impacting financial performance
- Internal administrative burden and claims oversight
- Missed opportunity to benefit from market-rate reductions
At the same time, MEMIC is offering:
- More stable, predictable costs
- Strong financial security with extensive reinsurance
- Built-in safety and claims expertise
- Finance options for withdrawal costs
What that means:
Capital you have tied up in reserves can be freed up to invest in growth.
A Different Kind of Partnership
At MEMIC, we focus on long-term partnership and shared success.
- $389 million returned to Maine employers [through dividends]
- Including $19 million paid in dividends just in 2025
- Supporting 21,000+ employers and 1 million workers nationwide
Moving to the standard market isn’t just about transferring risk. It’s also about gaining a partner focused on safety, cost control, and workforce stability.
Start the Conversation
With market conditions where they are today, many self-insured employers are surprised by what they find.
Contact your independent agent to explore whether a move to the standard market makes sense for your business. Don’t have an agent? Find one here.
