1. LAORM Loss Prevention Introduction

2. Services FARA Provides: Conduct Full Audits – every 3 years Compliance Reviews – conducted in between Full Audit years Facility Walkthroughs – annually Building Appraisals – 4 year cycle Assist in Inspections Accident/Incident Investigations Ongoing Consultations Offer LP Coordinator Training

3. Training: Annual Training on LP Program  New and Existing LP Coordinators  Conducted on a quarterly basis across the state at the following predetermined regional sites: February 2012 – Baton Rouge April 2012 – Monroe July 2012 – Thibodaux October 2012 – Mandeville  An email containing an Eventbrite web link will be sent to all Agencies to register for a specific training class.  Also training can be offered within the quarterly intervals through live teleconference / webinar setting. Next Step Defensive Driver Training Forklift Training

4. www.laorm.com

5. Additional LP Information: www.laorm.com Claims Reporting Loss Analysis Info LP Video Library LP Training Resources Contact Information

6. LP Contact Information:

7. LAORM Loss Prevention Targeted Risk Improvement Program

8. Program Overview Reduce claims cost through a consultative approach to Loss Prevention. Reduce claims cost through a consultative approach to Loss Prevention. Target/Benchmark agencies by use of Cost Per Man-hour (CPH) methodology. Target/Benchmark agencies by use of Cost Per Man-hour (CPH) methodology. Refocus & enhance the agencies current efforts from a LP standpoint. Refocus & enhance the agencies current efforts from a LP standpoint.

9. How is the CPH Calculated: Total number of hours worked per year divided by the total claims cost for that year. Total number of hours worked per year divided by the total claims cost for that year. Avg. cost per employee’s hourly wage that goes towards WC claims cost. Avg. cost per employee’s hourly wage that goes towards WC claims cost.

10. Calculate all agencies/locations CPH Calculate all agencies/locations CPH Set a targeted benchmark Set a targeted benchmark Formally invite agencies in writing that are above the benchmark to participate in the Program. (Not Mandatory) Formally invite agencies in writing that are above the benchmark to participate in the Program. (Not Mandatory) LP Consultant conducts detailed loss analysis by Line of Coverage (i.e., Workers Comp, General Liability, Commercial Auto, etc.), accident type, occupation, location, etc. LP Consultant conducts detailed loss analysis by Line of Coverage (i.e., Workers Comp, General Liability, Commercial Auto, etc.), accident type, occupation, location, etc. The Targeted Process:

11. Process, cont… LP Consultant will meet with agency representative to review loss data, establish program goals to mitigate loss drivers, and review process protocol.LP Consultant will meet with agency representative to review loss data, establish program goals to mitigate loss drivers, and review process protocol. Work alongside agencies’ LP Coordinators to find solutions that meet the agencies’ needs and budget constraints. Work alongside agencies’ LP Coordinators to find solutions that meet the agencies’ needs and budget constraints. Discuss & recommend tools available to the agency. Discuss & recommend tools available to the agency. Monitor Results. Monitor Results.

12. Top Performing Agencies: AgencyCPH Department of Natural Resources$0.00 Department of Public Service$0.00 Department of Economic Development$0.02 Secretary of State$0.02 Department of Environmental Quality$0.04 Employee Benefits$0.06 Louisiana Judiciary$0.07 Department of Education$0.08 Department of Civil Service$0.08 Louisiana Technical Colleges$0.08 Southern University Systems$0.08 Office of the State Treasurer$0.08 Louisiana Boards & Commissions$0.09 Louisiana Legislature$0.11 Office of Workers Compensation$0.12 Department of Social Services$0.13 Division of Administration$0.14

13. Program Facts 2010 WC claims cost the state 30.2 ¢ per man-hour worked A reduction of just 1 ¢ per man-hour would save the state $1.9 million in claims cost in a year’s time. A reduction rate of 1 ¢ per man-hour would result in a cumulative savings of $18.6 million in claims cost over the next 4 years. Maximum results can only be achieved through commitment, cooperation and support at all levels.

14. Questions & Answers