Compensation Advisory Organization of Michigan

What Compensation Advisory Organization of Michigan does

Compensation Advisory Organization of Michigan (CAOM) is a Michigan nonprofit corporation founded in 1983 and headquartered in Livonia, Michigan. CAOM operates the Michigan Workers' Compensation Placement Facility (MWCPF) under statutory authority granted by Chapter 23 of the Michigan Insurance Code of 1953 (MCL §§ 500.2301 to 500.2352). The organization functions as the designated data service organization for Michigan's workers' compensation insurance market, providing centralized assigned risk placement, experience rating, policy management, and financial data reporting for carriers, agents/producers, and employers operating within the state.

CAOM's core technology platform consists of a suite of web-based applications: the Online Assigned Risk (OAR) application for submitting assigned risk coverage requests; the Manage Policy System (MPS) for policy administration; the Michigan Financial Data Reporting Application (MIFDRA) for carrier financial aggregate reporting; and Online Experience Modifications (OEMS/MiMods) for experience rating calculations. Supporting tools include an Assigned Risk Premium Calculator, Class Code Lookup, Member Invoice Portal, and an Experience Modification Web Look-Up subscription service. These applications are accessed by licensed carriers and agents through authenticated web portals and serve as the regulatory infrastructure for Michigan's assigned risk market rather than as commercial software products.

CAOM's business model is a membership/assessment structure. Member insurance carriers are assessed fees on a quarterly basis to fund operations and maintain the assigned risk facility. Additional revenue is generated from the Experience Modification Web Look-Up Service, priced at $1,000 per quarter per company and billed through the quarterly CAOM assessment. Pricing for most services is bundled into membership rather than disclosed publicly. CAOM does not have outside investors, M&A activity, or public funding — it is a nonprofit industry advisory organization governed by a Board of Governors. The organization appears stable, with 11-50 employees and continuous annual regulatory cycles of rate-setting and circular publication.

Name

Compensation Advisory Organization of Michigan

Legal name

Compensation Advisory Organization of Michigan

Website

https://caom.com

Company type

Private

Founded year

1983

Operating status

Operating

Headcount range

11–50 employees

Short description

Compensation Advisory Organization of Michigan (CAOM) is a nonprofit, statutorily designated entity that operates the Michigan Workers' Compensation Placement Facility, providing centralized data collection, assigned risk placement, experience rating, and policy management services to insurance carriers, agents, and employers in Michigan.

Ownership category

akta.pro rank

Headquarters

HQ city

Livonia

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Carrier Assessments: CAOM assesses fees to member carriers on a quarterly basis to fund operations and maintain the assigned risk facility. The organization is a nonprofit corporation serving the Michigan workers' compensation insurance market.
2. Experience Modification Web Look-Up Service Subscription: Subscription-based service for carriers to access experience modification data online. Fee: $1000 per quarter per company, assessed on carrier's quarterly CAOM assessment.

Pricing tiers

Go-to-market motion1 record

Distribution channels2 records

Marketing channels3 records

Core offering

CAOM operates the Michigan Workers' Compensation Placement Facility (MWCPF), providing centralized workers' compensation data collection, assigned risk placement, policy management, experience rating, and financial data reporting for insurance carriers, agents, and producers operating in Michigan. The organization delivers its services through proprietary web-based portals and applications, funded primarily through quarterly member assessments and targeted subscription fees.

Product overview

The Compensation Advisory Organization of Michigan (CAOM) operates the Michigan Workers' Compensation Placement Facility (MWCPF), a licensed data service organization under Michigan state law. CAOM provides a suite of web-based applications and services for workers compensation data collection, assigned risk placement, experience rating, and policy management in Michigan. The core platform consists of multiple web applications including the Online Assigned Risk (OAR) system for policy applications, the Michigan Financial Data Reporting Application (MIFDRA) for carrier financial reporting, the Manage Policy System (MPS) for policy administration, and the Online Experience Modifications (OEMS) system for experience rating calculations. These are complemented by subscription services, online calculators, lookup tools, and reference documentation including the Basic Manual, Classifications Manual, and Statistical Plan. CAOM's portfolio functions as a regulatory data collection and reporting infrastructure serving Michigan's workers compensation insurance market rather than a commercial software product.

Differentiator

Problem solved

Functional benefit

Products and services

• Online Assigned Risk (OAR) Online portal for submitting assigned risk applications for workers' compensation insurance coverage in Michigan, used by agents, producers, and carriers to bind coverage in the residual market.
• Michigan Financial Data Reporting Application (MIFDRA) Electronic tool for insurance carriers to submit Michigan Financial Aggregate reports required under Michigan workers' compensation data reporting requirements.
• Manage Policy System (MPS) System for managing workers' compensation policy information and retrieving criticisms on applications, used by carriers to administer assigned risk policies.
• Online Experience Modifications (OEMS / MiMods) Portal for viewing and managing experience modification calculations for workers' compensation policies, including special request modifications to standard experience ratings.
• Assigned Risk Premium Calculator Online calculator for estimating assigned risk premium rates for workers' compensation coverage in Michigan, used by agents, producers, and carriers.
• Class Code Lookup Lookup tool used as an aid in determining the proper classification code for a given operation under the Michigan Workers' Compensation Placement Facility.
• Member Invoice Portal Online portal for member insurance carriers to view and pay quarterly assessment invoices.
• Experience Modification Web Look-Up Service Subscription-based web look-up service for accessing experience modification data, priced at $1,000 per quarter per company and assessed on each carrier's quarterly CAOM assessment.
• Basic Manual for the Michigan Workers' Compensation Placement Facility Comprehensive reference manual defining rules and procedures for the Michigan Workers' Compensation Placement Facility.
• Michigan Workers' Compensation Placement Facility Information & Procedures Handbook Handbook summarizing procedures and guidelines for agents and producers working with the Michigan Workers' Compensation Placement Facility.
• Classifications Manual Manual providing definitions of how workers' compensation classifications are applied by the Michigan Workers' Compensation Placement Facility.
• Workers' Compensation Statistical Plan Statistical plan providing instructions for the preparation and filing of workers' compensation experience data for the State of Michigan.

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature5 records

Scale indicators2 records

Recent moves4 records

Expansion highlights3 records

Regional players

• Workers' Compensation Insurance Rating Bureau of California (WCIRB): WCIRB is California's statutorily designated rating organization for workers' compensation, collecting data, calculating pure premium rates, and supporting assigned risk plan operations. It mirrors CAOM's role at the state level and is structurally comparable.
• State Compensation Insurance Fund of California: California's State Fund is one of the largest workers' comp carriers in the U.S. and serves a residual market function similar to CAOM's MWCPF. It is comparable as a state-affiliated workers' compensation market mechanism, though it operates as an insurer rather than a data service organization.
• Workers' Compensation Insurance Fund (Utah): Utah's Workers' Compensation Fund is a state-chartered workers' comp insurer that also performs market-stabilizing functions. It is comparable as a state-level workers' compensation market infrastructure entity, though it is an insurer rather than purely a data service organization.
• Texas Department of Insurance, Division of Workers' Compensation: Texas regulates workers' comp data and residual market functions through its state insurance department. It is comparable as a state-level workers' comp regulatory and data infrastructure entity, though it is a government body rather than a private nonprofit.

Broad incumbents

• Insurance Services Office (ISO): ISO, a Verisk business, is a major provider of statistical, rating, and underwriting data services to property/casualty insurers. It is comparable to CAOM in the broader sense of serving as an industry data utility, though its scope spans multiple lines beyond workers' compensation.

Others

• Workers Compensation Insurance Organizations (WCIO): WCIO is an industry association of workers' compensation rating and data organizations. CAOM is part of this ecosystem, and WCIO is comparable as an umbrella for the same type of data service organizations CAOM belongs to.

Direct peers

• National Council on Compensation Insurance (NCCI): NCCI is the dominant nationwide workers' compensation data service organization, performing ratemaking, experience rating, and statistical data collection across most U.S. states. It is the most direct functional analogue to CAOM, which serves the equivalent role for Michigan.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat3 records

Key risks5 records

Key highlights5 records

Customer concentration

• LinkedInlinkedin.com/company/compensation-advisory-organization-of-michigan

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Compensation Advisory Organization of Michigan