But if the capital can be raised, the members can derive RRG benefits as stated above. The alternative market is a growing force in workers' compensation. There are many creative alternatives to traditional insurance. SIGs let businesses band together to insure their workers' compensation risks, offering cost savings to participants. Most pay commissions and thus offer opportunities to agents.
Some states allow only homogeneous groups , where all members are in the same industry.
Others allow heterogeneous groups, which are open to all businesses that meet underwriting guidelines. Some states to do not permit SIGs. In most states, SIGs at first must charge the state-mandated rates. However, if their losses and expenses are low, they can pay higher dividends or grant larger premium credits. Another SIG advantages is that they're exempt from residual market loads, or RMLs.