As the 1990s approached, workers' compensation in Rhode Island was in trouble. Claim costs were skyrocketing.  In 1990, a 123 percent rate increase was filed.

The General Assembly enacted legislation that year for the creation of the State Compensation Insurance Fund (SCIF). The statute states, "The fund must be organized and, except as provided in subsection (c) of this section, 27-7.2-9.1 (c), or elsewhere in this chapter, operated as a domestic mutual insurance company."

In July 1992, the name of the fund was changed to Beacon Mutual Insurance Company.  We wrote our first policy on August 13, 1992. Substantial improvements in the Workers' Compensation Court system had been realized. Major revisions had been enacted to bring premium and costs into balance. These changes, combined with our aggressive loss prevention and claim management, enabled us to establish and maintain a successful operation.