In 1980, leaders of the Tennessee Valley Public Power Association set out to assist members that had been experiencing affordability and availability problems with their property and casualty insurance programs. An Insurance Study Committee was organized to examine the feasibility of an association-owned insurance company designed for TVPPA members. The Committee's work culminated in the creation in 1983 of TVPPA's wholly-owned captive insurance subsidiary, Distributors Insurance Company (DIC).
Historically the key advantage to TVPPA members having their own insurance company – DIC – has been guaranteed availability. During past restrictive market cycles, such as 1985-1987 and 2001-2004, DIC stood by TVPPA members offering comprehensive coverages at competitive prices while the traditional insurance market "non-renewed" and abandoned the Valley's utilities. We established Distributors Self Insurance Fund (DSIF) as a division of DIC in 1996 to make Workers' Compensation coverage available at more competitive rates to Tennessee domiciled members. DIC is flexible, and provides deductible programs, tailored coverage limits, special risk coverages and individual consulting services that other insurance companies often overlook or refuse to offer. The DIC program has the not-for-profit electric utility industry as its exclusive interest.
DIC has developed into a strong financial company. DIC is regulated by and directly accountable to the Tennessee Department of Commerce & Insurance for its operations, financial solvency and ability to pay claims. Towers Watson, the nation's foremost actuarial consulting firm, examines DIC's premium rating and loss reserving methods annually. Johnson Lambert & Co., a highly respected independent CPA firm, conducts an annual financial audit of DIC based on GAAP accounting procedures. Daily company operations and service coordination are the contractual responsibility of Wells Fargo Insurance Services, the 4th largest U.S. insurance brokerage firm. Wells Fargo Insurance Services manages DIC’s claims handling activities, which are also monitored by a Claims Committee made up of managers from DIC insured utilities.
An active safety and loss control program was a key interest of DIC's pioneering leaders in the early 1980's and it remains a major thrust of DIC's service program today. Regular safety and loss control visits are scheduled at each DIC insured location. Electric, gas, water and wastewater operations are reviewed and appropriate safety methods are routinely presented to employees during these visits. In addition, DIC insureds may purchase tailored safety training services. Further, all DIC/DSIF Workers' Compensation insureds are eligible to participate in our unique and extremely successful Shared Cost Safety Incentive program, which has returned an average of over $85,000 annually to successful participants.