What is the primary purpose of a Self-Insurer's Annual Report?

The primary purpose of a Self-Insurer's Annual Report is to summarize the financial health of the self-insuring employer. This report plays a crucial role in providing stakeholders, such as regulatory bodies and the employer itself, with a comprehensive overview of the financial status concerning workers' compensation liabilities. It details how much has been paid out for claims, the reserves set aside for future claims, and overall financial projections, which are essential for assessing the self-insurer's ability to meet its obligations.

In the context of self-insurance, financial health is vital because it ensures that the self-insured employer can sustain its program and fulfill its responsibilities to employees who may file workers' compensation claims. A well-prepared report can indicate if the self-insured employer is adequately managing its claims and finances, which is crucial for maintaining compliance with state regulations and ensuring employee confidence in the program.

The other options, while they might seem relevant, do not encapsulate the primary objective of the report. Listing employees' personal details is not only unnecessary but also a breach of privacy and confidentiality. Reporting the number of claims filed provides useful information but does not address the overall financial stability. Offering operational strategies for risk management is part of broader business considerations and not the specific focus