Dennis J. Powers Jr. AIC, ARM, CPCU Lamb, Little & Co.

Hard Market Soft Market

Hard Market Focus on Profitability Premiums Increase Don’t Like Risk

Soft Market Focus on Growth Premiums Decrease Underwriters Appetite Is More Aggressive

Insurance Programs Guaranteed Cost Loss Sensitive

A classic method of risk transfer: You pay the carrier premium to cover your claims.

Pro: Your cost is fixed, regardless of claims experience. Con: You flex with the marketplace and the status of your industry’s loss history. Pro: Your cost is fixed, regardless of claims experience. Con: You flex with the marketplace and the status of your industry’s loss history.

1.Classifications 2.Experience Modification 3.Schedule Credit

Exposure/100 x Rate = Manual Premium 10,000 x 5.02= $50,200

Your Information

Review Your Claims for Accuracy Utilize Loss Control

This is where all the companies are going to be different. The more you bring to the table, the more aggressive you can be. This is where all the companies are going to be different. The more you bring to the table, the more aggressive you can be.

Claims Mgmt: Early Reporting Accident Investigation Return to Work Loss Control: Documented Safety Program Documented Training Program Loss Assessment Report

George M. Canavan, AIC Lamb, Little & Co.

Medical Benefits Temporary Total Disability Permanent Partial Disability Penalties

Source: Liberty Mutual Data Warehouse

Don’t Underestimate Anything

Employee Incident Report Employee Incident Report-Spanish Supervisors WC Investigation Report Witness Form

Delay in Reporting Can Be Expensive Threat of Litigation Slows Down Claims Investigation

Provides You Control Provides Significant Savings Conveys the Right Message to Workforce

Per NCCI, the median incurred cost of a WC claims exceeding more than 7 days of lost time from work is $31,600. Claims under 7 days of lost time, the average claim is <$10,000.

Why Conduct A Claim Review?Who Participates In a Claim Review?When Are Claim Reviews Done?

Designated Claim Handler How Do Employees Report New Claims? Accident Investigation Subrogation Investigation Time Sheet Initial Explanation of Claims Process/Benefits to Emlployee Claim Reporting to Insurance Carrier Initial Medical Care Internal Claims Management Procedures Supervisor/Management Training Return To Work Programs Establish Special Claim Handling Instructions

Bill Crimmins, CSP Titan Risk Management, LLC

1.Safe Behavior 2.Technically Proficient 3.Compliant

Loss Control Representative Survey Risk Selection Research Your website OSHA (OSHA.gov) DOT (safersys.org) BLS Statistics Report to Underwriter

Periodic Risk Assessments Safety And Health Program Document Inspections / Efforts Document Employee Training Enforce Your Program Accountability

What are my areas of concern Do I have the expertise to address it If not, get help

Use Loss Control & Manage Claims Reduce Experience Modification Factor Allows Your Agent To Present You As Best In Class to Negotiate Your Schedule Credit

Financial (CFO, Comptroller, Etc.) Coverage Placement Human Resources Claims Administration Return To Work Production OSHA, Return to Work, Accident Investigation

Create Accountability Analyze Incurred Losses for Prevention By Location, Season, Cause, etc. Incent Departments to Improve Safety.

By Department, or Location

By Time of Year

By Time of Day

By Type of Injury

Direct Loss Indirect Loss

INDIRECT Loss of Production Employee Morale Loss of Quality Employee Time of Staff to Manage Claims Damage to Equipment & Property

YOU LOSE $4 FROM YOUR BOTTOM LINE FOR EVERY $1 YOUR INSURANCE CARRIER PAYS IN WORKERS’ COMPENSATION CLAIMS INSURANCE YOU $1

Question 1: Is your rating information accurate? Question 1: Is your rating information accurate?

Question 2: Are you managing your claims to have an impact on your premium? Question 2: Are you managing your claims to have an impact on your premium?

Question 3: Are you managing your Loss Control Service to have an impact on your premium? Question 3: Are you managing your Loss Control Service to have an impact on your premium?

Question 4: Are you creating accountability by properly communicating the results? Question 4: Are you creating accountability by properly communicating the results?

Question 5: Are your current vendors a resource? Question 5: Are your current vendors a resource?