Workers’ Compensation at The Walt Disney Company

1. Workers’ Compensation at The Walt Disney Company National Council of Self-Insurers May 20, 2013

2. The Walt Disney Company The Walt Disney Company Media Networks 2012 Revenue: $19.4B USD Theme Parks and Resorts 2012 Revenue: $12.9B USD Consumer Products 2012 Revenue: $3.3B USD Studio Entertainment 2012 Revenue: $5.8B USD Interactive Media 2012 Revenue: $845M USD

3. Corporate Risk Management Profit Center Management Strategic Direction and Alignment WDW Risk Management Disneyland Risk Management International Development Disney Regional Entertainment Corporate Insurance Studio/Corp Safety ESPN World wide Broadcasting ABC Broadcast Operations ABC Risk and Environmental ABC Sports ABC Owned and Operated Stations

4. Primary Workers’ Compensation Concerns Theme Parks & Resorts– Over 95,000 Cast Members Media Networks– News, sporting events and broadcasting support Consumer Products– Retail stores and distribution centers Studio Entertainment– Motion picture and television production

5. Self-insured WC Claims

6. Claims Organization Theme Parks: • Self-insured in California • Self-insured in Florida • Self-administered by local Disney team All Other BU’s: • High-deductible 3rd party insurance • Primary in Disney captive • Administered by TPA

7. Claims Organization Formed January ‘03 for: • Workers’ Compensation • General Liability • Auto Liability • Other coverages TPA is overseen by corporate RM staff

8. Claims Organization Four tiers of “insurance”: • Guaranteed cost for smaller business units • Three levels of retro plans for larger businesses • Evaluated within 1st year and adjusted • Motivates safety and loss reduction • Degree of self-insurance tied to capacity of the business unit to bear the risk

9. Key Claims Practices Across all claims administrators: • Early contact and communication • Return to work • Delivery of medical care • Financial responsibility • Integration with safety and loss control

10. Return-to-work • The best result for both the injured worker and employer • Requires a clear understanding and documentation of job requirements • “Recovery at Work” philosophy with restriction management • Communication and dialogue are essential

11. Delivering Medical Care • On-site medical and occupational clinics • Medical provider networks • Effective case management • Controlling pharmacy costs • Physical therapy and athletic trainers

12. Financial Responsibility • Develop and apply a clear reserving philosophy • Estimate the probable future costs for benefits that may be due • Maintain consistency • Engage the actuarial consultants • Drive costs to the profit center

13. Claims Management and Service Teams Safety and claims teams exchange information about losses and possible prevention Effective claims management reduces insurance costs and improves the program Safety, Industrial Health and Fire and Property Protection Professionals Risk Management and Insurance Effective safety programs attract more competitive insurers and lower premiums Integration with Safety Loss prevention, loss control and risk management must work together to achieve success

14. Workers’ Compensation Team You can design and create, and build the most wonderful place in the world. But it takes people to make the dream a reality. Walt Disney

15. The End