PEOs. This financial assurance is backed by over $15 million in surety bonds and assures PEO clients, employees, insurers and government authorities that accredited PEOs are meeting their contractual and fiduciary responsibilities. PEOs may also undergo a certification process conducted by the independent Certification Institute (CI) formed in 2002. This certification verifies that a PEO's workers' compensation (WC) program is meeting proven insurance industry risk management best practices to reduce work-related accidents and health exposures and control WC insurance losses. Updated changes In 1985 there were approximately 275 staff leasing companies in operation. In 2012, according to National Association of Professional Employer Organizations (NAPEO), there are now approximately 700 PEOs operating in all 50 states. They were responsible for approximately $81 billion in gross revenue in 2010. NCCI impact on PEOs A recent change in 2013 regarding the way companies Experience Modifier is calculated has caused companies with previously good modifiers to get better, while companies whose modifiers had struggled previously have gotten worse. The Experience Rating Plan, as the National Council on Compensation Insurance (NCCI) refers to it, will be undergoing a change that NCCI believes will more accurately reflect individual employers’ claims experience. NCCI, the National Council on Compensation Insurance, sees this as a "Mod Neutral" action since the median average does not change. While some companies get better, some get worse. Overall, however, the "center" stays in essentially the same spot. While this will assist the good companies to improve their position, this will cause the companies in dire straits to get worse. Many of these companies may be forced out of the "standard" market and into secondary markets such as PEO's and other "options of last resort" such as state pools. This may lead to a further increase in the number of PEOs, or it may lead to an increase in state pools, or possibly both. NCCI views this action as having two primary benefits. The first is that it "tailors the cost prediction and final net premium cost to the individual insured" making the calculation more accurate. The second benefit is that "it provides added incentives for loss reduction." See also Agency worker law Business Process Outsourcing Contingent workforce Manpower Inc. Alternative Employer Organization References Human resource management Professionalism Employers