PEOs By The Numbers

1. Master policy clients of a PEO average 9.7 employees, while multiple coordinated policy clients average 6.7 employees.  By contrast, the average number of employees for non-PEO policies is 19.4.
2. PEOs represent 1-2% of all payroll
3. In Florida, it is 6% of the market
4. Five PEOs make up 48.8% of the overall PEO market
5. PEO loss development is less for PEO’s then standard market.  For large deductible clients, 1.278 at 42 months versus 1.41 for the non-PEO business
6. Approximately 90% of PEO client companies are not large enough to promulgate an experience modification
7. PEOs have had comparable or lower loss ratios

Via: Industry Leaders Meet With NCCI | Chief Economist Provides Positive Update on the PEO Industry