1. SELF INSURANCE Where are we, really? And where are we going? Preston Williams – Self Insurance Director MWCC With special thanks to Chris Burkhalter and Sonny Blackwell

2. So, where are we? (really?)  Soft market, not enough premium for groups; and Individual companies are being wooed by insurance carriers, premiums are too good to pass up  Companies don’t do enough to protect their workers

3. Companies don’t do enough to protect their workers, oh REALLY?  More police officers die in traffic accidents than felonious assaults!  And more shoot themselves than others!  Last year there were only 48 deaths in MS as a result worker injury or illness. Nine of these (19%) were caused by vehicle mishaps.

4. Why safety programs get no respect!  Perceived as a cost  Perceived as corporate overhead  No line accountability  Focus on “things” and reports  Inconsistent implementation  Punitive orientation  “Activity” based (more important than production)  Don’t communicate in business terms.

5. Traditional Lean  Compliance based  Enforcement  Imposed  Cost  Success oriented  Performance  Embraced  Investment Avoid failure Achieve success

6. Total Incurred June 08-May09 $429,515 Total Incurred June 09-May10 $155,432 Improvement $337,083 Fully loaded investment $ 60,400 ROI = x 100 = 458% ($337,083-$60,400) $60,400

7. From the Clarion Ledger  Mississippi has some of the highest rates of chronic illnesses like diabetes, obesity and heart disease.  "We have to do something to get health care costs under control," Hill said. "It's important not only for the health of our citizens, but also for the health of our budget."

8. In a perfect business world  We would always hire the best candidate for the job  We would live in a drug free environment  We would have Wellness programs & high morale

9. But wait! In this economy…  You can prescreen  You can drug test  You can, and should, have an “on board” program  You can have wellness programs  You can show employees you give a damn!

10. Soft market, not enough premium for groups  We are in recession, less payrolls/premiums for all  Yet surplus overall is approaching a ten year high

12. In Self Insurance  Not controlling losses directly drives YOUR costs up!  The only one that must make a profit is you!  Everyone else is overhead and looking to you for their profit!

13. This is PROFIT! The Falcon, USF&G’s $25 million plane

14. Next up - A slide from yesteryear! (Or 2008)

15. Prices are coming down this year, next year and maybe even in 2010  But then  Prices are going up and remember  Agents can control their accounts; not the carriers  Cost and profit margins will be paid by the policyholders to the stockholders (The real customers!)

17. Critical Issues  Education is critical, your board, your bosses, your clients, yourselves  Beware of due diligence or CBA, there is no one better than you!  A retiring expert shared his one secret… return to work is everything  But really.... The only good accident is the one that never happens  If you outsource claims, MAKE SURE you are TOTALLY INVOLVED!

18. Pick your own quote!  EVERYTHING COUNTS AND EVERYONE MATTERS- W. R. Berkley  Do what you can, with what you have, where you are- T. Roosevelt  Do you have twenty years of experience or one year 20 times?

19. Whether Individual or Group Remember:  Pigs get fat  Hogs get slaughtered