2011 MASI Fall Conference

2010 Statistical Highlights

• There were 11,290 lost time accidents exceeding 5 days• 2,626 claims controverted in 2010• Hinds county 1,146 claims, Harrison county with 855 claims• Females less frequently with 4,566 claims (40.4%)• Major injuries or illnesses occurred on Monday, 2,228 claims• August was reported most frequently as the month of

occurrence, 1,126 claims or 10% followed by June with 1,090 claims or 9.7%

• Strain was the leading nature of injury with 3,690 claims or 32.7%

2010 Statistical Highlights (cont’d)

• Multiple body parts was the part of body affected most with a total of 1,752 claims or 15.5% followed by Lower Back-Lumbar with a total of 1,695 claims or 15%

• Lifting was the leading cause of injury with a total of 1,428 claims or 12.6%, followed by Fall / Slip / Trip with 930 claims

• There were 75 fatalities reported in 2010• There were 7,620 claims received from Insurance carriers,

3,619 from Self Insured• A total of $333,847,029.30 was paid by Insurance Carriers

and Self Insurers in 2010; $197,878,784.81 was paid for medical expenses and $135,968,244.49 was paid for indemnity benefits.

2626 2621 2569 2640 2367Controverted

MS High Water Mark 1994 – 20557

(Controverted – 2966)

2011 YTD 8/31/2011 – 7416

Projected 12/31/2011 – 11,124

2009 – 48 2008 – 67 2007 – 81

CLAIM COST

Year Medical Indemnity Total

2008 196.4m 146.7m 343.1m

2009 185.4m 132.9m 318.3m

2010 197.9m 135.9m 333.8m

COMMERCIAL INSURANCECOMPARED TO

SELF INSURANCE

Year Comm Ins SI SI%

2008 198.8 144.3 42.1

2009 184.3 134.0 42.1

2010 208.2 125.6 37.6

Administrative Expenses

• Receipts – $5,218,087.38

• Disbursements – $4,895,465.96

• Balance – $322,621.42

• Current Assessment Rate – 1.55%

• Total Staff – 55

NATIONAL TRENDS

•Net Written Premiums

2005 $47.8B

2007 $44.3B

2009 $34.6B

2010 $33.8B

•2005 To 2010 Minus 29.3%

•Manufacturing & Construction Over 40% of Premiums & Only 20% Of Workers

•Rates Continue To Drop

•NCCI Defines Current WC Market As PRECARIOUS

•Claims Frequency Up 2010 (9%?) – First Increase Since 1997

• Average Indemnity Down 3% - 2010; Compared to Increase 8.2% - 2008

• Average Medical Up 2% - 2010; Better Than Double Digit Increases Several Years Ago

• Average TTD in 2010 – 141 Days Up From 123 Days in 2006• Construction Industry Experienced Disproportionate Impact

During Current Recession:– On Average The Previous Nine Recessions Construction

Employment Fell 5% And Recovery Began Five Quarters Following Peak

– In the current “Great Recession,” Construction Fell Over 25%. The Decline Did Not End Until More Than Two Years Following Peak And Has Yet To Show Signs Of Recovery.

NATIONAL TRENDS (cont’d)

Emerging Trends• Obesity

– Every State (Except Colorado) Over 20% of Adult Population Is Obese

– MS Leads the Nation (30% +)– Obese Workers File Twice

As Many WC Claims As Healthy-Weight Workers

– Obese Workers Have 13 Times More Lost Workdays

– Medical Cost 6.8 Times More Than Non-Obese– Indemnity Cost 11 Times Higher Than Healthy Workers

Emerging Trends (cont’d)

• Aging Workforce– Median Age of U.S.

Worker 41 Years– Fatality Rate of Workers 65

& Older Is Triple That Of Workers 35-44

– Age 65+ Workers’ Median Lost Time Is 50% Greater Than Age 35-44

DISTRACTING DRIVING / EQUIPMENT OPERATION

Question – Do You Ever Do Other

Tasks Like Talk On Cell Phones,

Eat Or Drink While Driving?

72.4% YES

Question – Have You

Ever Been Hit Or Nearly

Hit By Someone Talking

On A Cell Phone? 45.4% YES

Legislative Change

Direct Appeal

Effective 7/1/2011