The Company had been aware that AARIS had been considering other insurer affiliations and developed contingency plans for writing California workers' compensation business.
The Company noted that the AARIS relationship accounted for approximately 12% of its full year gross written premiums in 2003 and that this percentage was expected to decline as the Company has been confronted with additional competition and market rate decreases in 2004.
San Francisco-based AARIS has established a Medical Provider Network (MPN) for tens of thousands of its policyholders as allowed by workers' compensation reform legislation signed into law by Gov.
Since SB899 requires insurers to track and ultimately prove employees were notified of their rights under a MPN, AARIS was faced with the monumental task of gathering and managing employee data from thousands of companies throughout California, said Paul Finkle, President and CEO of sharedHR.
With the expansion of our proven and reliable Internet-based technology, AARIS will be able to manage the complexity of the MPN processes, confidently serve the varied needs of its policy holders, and comply with the new regulations.
We chose sharedHR because we've been pleased with the performance and flexibility of their HR management system," said AARIS President, Robert Darby.
The Company believes it is fairly well known that AARIS has been considering other company affiliations.
AARIS has not notified the Company of its intent to terminate the contract.
The Company has spoken with principals of AARIS on several occasions today, who confirmed, after some initial confusion, that AARIS has been in discussions with other parties but has not signed a binding agreement.