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Page 1: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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Page 2: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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Loss History

• Loss Trends – type and frequency

• Identify Strains, Tears and Pulls

• Number of Lost Time Claims

• Large Loss analysis - % of total cost

• Compare OccuSure costs for similar claims

• Projected Losses going forward

Page 3: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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Safety Management

• Review current programs in place

• How many losses could have been prevented

• Ground Troops in place

• Owner Support

• Pre-inspection or Phone Survey

• Attitude is extremely important

Page 4: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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Claims Management

• Current claims procedures

• Physician Panels

• Return to Work

• Comparison of Client data to NCCI and OccuSure

• What impact could we have with client support

• OccuSure Commitment Forms

Page 5: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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NCCI Statistics

• Lost time account for 23% of the total claims but 94% of the cost

• Average Medical Only claim - $580

• Average Lost Time claim - $41,800

• Average NCCI Claim cost - $7,100

• The average WC claims has increased 112% over last 10 years

• WC costs 71% more than Group Health during the first 3 months

Page 6: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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Claims Management

Page 7: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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How are we DIFFERENT?

We MANAGEMANAGE CLAIMS

We do not “Adjust” Claims

Adjust –

To fine tune, regulate, tweak, administer

Manage –

To direct, supervise, control, accomplish

Page 8: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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Claims MANAGEMENT Cornerstones

•75 Claims Per Adjuster – Includes Med Only and Lost Time Claims

•Insured assigned to one adjuster to promote a good working relationship

•Regular Round Table Discussions on Claims & Accounts

•Adjuster Maintains File Control–Not Case Management or Legal

Page 9: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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PROACTIVE TEAM APPROACH

•Weekly Roundtable Claim Meetings–All claims <30 days reviewed at least monthly

•Weekly Office Meeting –Safety & claims discuss at risk accounts

•Monthly Meeting–Underwriting, Claims and Safety

Page 10: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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The Typical TPA Life of a ClaimClaim Called into

Claim intake Company

Claim Assigned toBasic Adjuster

Claim Assigned to Lost Time Adjuster

Claim Assigned to Case Mgr Clmt gets an Atty often

Claim assigned to Litigation Adjuster

Claim Assigned to an Attorney

Claim has SubroAssigned to subro firm or adj

Page 11: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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OccuSure Life of a Claim

Insured

Safety

Surveillance Attorneys

Case Management

Doctors

Claimant

CLAIMS MANAGER

FROI Fax or Email

distributed to Claims & Safety

Page 12: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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RESULTS

Industry Average

Case Loads Indemnity 150-200Claim Duration Med Only 150 DaysDuration Indemnity 4-6 YearsAverage Claim Cost $ 7,100% of Claims – LT 23 %Litigated Cases 13 %

Type of Injury Total Cost

Back $150,000 to

$375,000

Shoulder $ 30,000 to

$150,000

Knee $ 50,000 to

$175,000

OccuSure Average

Case Loads 75 (incl. Med Only)

Claim Duration Med Only 74 DaysDuration Indemnity 132 YearsAverage Claim Cost $ 3,606% of Claims – LT 11 %Litigated Cases 0.15 %

Type of Injury Total Cost

Back $ 16,244 75 (largest

$190K)

Shoulder $ 18,089 (largest $152K)

Knee $ 12,680 (largest $69K)

Page 13: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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Evaluating a New Risk

•Typical Claims (Strains, Slips, etc)–Evaluate to ensure nothing unusual regarding account or claims specifically to account for increased costs.

–If not and company has typical claims and frequency then we adjust to OccuSure typical results for that industry.

•Catastrophic Claims –Safety & Claims discuss the catastrophic risks vs controls

–Sometimes adjustment in claim cost can be made for OccuSure claims handling. Get specifics.

Page 14: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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Loss Control

Page 15: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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Pre-Inspection Assessments

•Corporate Culture’s Top Management Commitment to Safety and OccuSure Guidelines

•Hiring Practices

•Temporary Modified Duty Policy

•Management’s desire to change loss history

•Identify Risks and Controls

•Company Safety Expectations Communicated

Page 16: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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LOSS CONTROL RELATIONSHIP

•Establish a relationship based on trust and partnership

•Communicate support system of Loss Control function

•Offer High Quality Safety Systems

•Establish accountability for timely follow-up action on recommendations

Page 17: 1. 2 Loss History Loss Trends – type and frequency Identify Strains, Tears and Pulls Number of Lost Time Claims Large Loss analysis - % of total cost

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Behavioral Based Model

•Communicate the value of The M.O.S.T.® Safety System

•Customize to the individual company

•Train the trainer to maximize resources

•Train supervision on observation methods from The M.O.S.T.® System for Supervisors