The Beneplan Co-operative, a member-owned buying group of 200 employers, distributed $1.4 million in dividends (also known as premium refunds) to its members in May 2013.The dividends came as a result of surpluses of health, dental, and life insurance premiums which were not used towards claims in 2012. In other words, a refund of the profit left over after claims were paid.Members whose groups incurred a deficit did not receive a dividend, and were not asked to pay back their deficit.The block is underwritten fully by The Co-operators.

• 78% of participating employers received a dividend.
• 22% of employers had a deficit (expenses were greater than premiums) which they did not have to pay.
• $12,079 was the average dividend.
• 12% was the average proportion of premiums which the dividends represented.
• 12% happens to be the amount of inflation (trend) which the insurance industry uses to mark up claims.

This demonstrates that the Beneplan Co-operative returns the trend factor to employers if their group did not experience the expected inflation in their claims.Find out how your company can get a dividend on your group benefit plan by calling 1-800-387-1670 x252 or emailing yafa at beneplan dot net.