There are many signs of Spring: breakup; budding crocuses; more daylight; baseball. However, there is another Springtime ritual that is becoming commonplace: the distribution of dividends to APEI members. At its Spring meeting this past March, the APEI board, for the third year in a row, authorized the company to pay out dividends to members. This year, the total amount to be handed out will be the highest ever.
This year’s distribution, which will show up on members’ renewal quotes, will reduce renewing members’ premium bills by almost 15%.
Each member’s dividend will vary. Although every renewing member will receive a dividend, the amount of the dividend is affected by two things: longevity in the APEI program (maximum benefits apply after 3 years) and the member’s loss record. Those members with fewer than average losses will see higher than average dividends. This is just one more reason to do all you can to keep losses in check.
Alone, the dividend is a wonderful way to reward program members and help keep insurance costs low. But that’s not all. Also at the Spring meeting, the board again approved using some excess company assets, or equity, to reduce premiums for everyone. Even new members will enjoy these premium reductions.
Premium reductions will lower the cost for each APEI member’s insurance by another 10%.
Between the two programs—the dividend and the premium reduction—the cost for insurance for APEI members is being cut almost 25%.
Insurance costs in general are rising. Although we hope these programs will result in lower premiums compared to last year, that is not a guarantee. Claims and reinsurance costs continue to rise. But even if a member’s premium doesn’t go down, these programs nonetheless help offset any other increases.