Workers’ Compensation: Policy & Market Trends

1. Workers’ Compensation:Policy & Market Trends Dennis J. Powers Jr. AIC, ARM, CPCU Lamb, Little & Co.

2. Market Conditions

3. Market Conditions

4. Market Conditions

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

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

8. The Premium Summary • Classifications • Experience Modification • Schedule Credit

9. Class, Definition & Rate

10. Exposure/100 x Rate = Manual Premium 10,000 x 5.02= $50,200 Class, Definition & Rate

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12. Experience Modification Factor

13. Experience Modification Rating • NCCI • Set Formula • Historical Picture • Comparison

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18. Section B

20. Section B

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24. Section b

25. Section C Your Information

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27. What Can You Do?

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

30. What Can You Do?

31. Effective Claims Management:Your Toolkit To Reduce Claims Exposure George M. Canavan, AIC Lamb, Little & Co.

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33. What is the Employer’s Exposure according to the Illinois WC Act?

34. Early Reporting Delay in reporting a claim increases costs Source: Liberty Mutual Data Warehouse

35. Accident Investigation Don’t Underestimate Anything Treat Every Incident The Same Freeze The Facts – People’s Stories Change

36. Time Card

37. Accident Investigation Reports

42. Report Your Claims! • Delay in Reporting Can Be Expensive • Threat of Litigation • Slows Down Claims Investigation

43. $ Return To Work

44. Return to Work (Cost/Benefit) • 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.

45. Claim Reviews

49. Claims Handling Assessment • 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

50. Safety & Loss Control Bill Crimmins, CSP Titan Risk Management, LLC