CRL Underwriting / Claims Management Meeting Risk Control Roundtable NOVEMBER 16, 2011 Thomas Hilgen...

CRL Underwriting / Claims Management MeetingRisk Control Roundtable

NOVEMBER 16, 2011

Thomas HilgenSVP, Workforce Strategies

Charlotte, NC

2MARSH

Risk Control Roundtable

• What are you currently doing?

• How are you staffed?

• How do you integrate Risk Control and Underwriting?

3MARSH

Pre-Employment

• Job descriptions

• Physical job demands screening

• Workplace safety & health policies

Employment

• Hiring practices

• Pre-placement screening

• Drug-screening / testing

• Criminal background checks

Training

• Employee orientation

• Safety training programs

Workplace Safety

• Safety committees

• Safety & health activities

• Ergonomics

• Slip/Fall Prevention

• Motor Vehicle

Post-Accident

• Medical response

• Selection of medical providers

• Post-accident communication with employees

Cost Containment

• Claims mgmt performance stds.

• Direct Medical care to assigned provider

• No supplementing workers’ comp

Return-to-Work

• Physical capability assessment

• Workplace accommodations

• Transitional duty assignments

Continuous Improvement

• Performance measurements

• Safety & health audits

• Cost allocation

Work-Related Incident

• Prompt reporting

• Accident investigation

Pre-Loss Activities Post-Loss Activities

The Loss Continuum

4MARSH

The Effect of a Formalized and Effective Return-to-Work Process

964 1010781

1354905

2028

1536 1475

436199

0

500

1000

1500

2000

2500

2008 2009 2010 2011 2012

Citywide Restricted Duty and Lost Time

Restricted Days Lost Days

Restricted Duty and Lost Time

5MARSH

Risk Control Strategies Model

VOICE OF THETAXPAYER SERVICE

EFFICIENCYPRIDE

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LeadershipLeadership Focus, Direction & ParticipationFocus, Direction & Participation

Continuous ImprovementContinuous Improvement

Safety Policy Safety Policy Strategic PlanStrategic Plan

Serving Serving CitizensCitizens

Efficient WorkplaceEfficient Workplace

Management Leadership Communications Employee Involvement

Performance MeasuresErgonomics Process Education & Training

ROI FocusROI Focus


EFFICIENCYPRIDE


EFFICIENCYPRIDE

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ROI FocusROI Focus

6MARSH

ROI-Based Focus

FALL, S

LIP, T

RIP

OVEREXERTION

VEHICLE ACCIDENT

GUNSHOT

STRUCK BY OBJE

CT

FALL FROM HEIGHT

FIGHT

PHYSICAL F

ITNESS EVAL.

PoliceUtilitySolid WasteFireTransportation

AviationCATSEPM

7MARSH

Survey Results: Question 1

What is the most important loss control issue facing your pool today?

• Law enforcement jail operations

• Lack of funds by county government

• Automobile accidents

• Developing a system to aid Sheriffs in reducing the frequency and severity of law enforcement vehicle crashes & collisions

• Law Enforcement Altercations (both for imprisoned and arrestees)

• Automobile liability claims, medical care of inmates

• Getting the participants to buy into the program and take Loss control recommendations seriously

• Exposure for county jails, followed by sheriff's department (GL and comp)

• Inmate claims

8MARSH


What are you doing to address this issue?

• Model policies and procedures, hired law enforcement specialist, law helpline; regional seminars

• Implementing risk management programs that provide financial assistance to counties

• We have 5 National safety Council Driving instructors teaching various defensive driving courses. We use a driving simulator as training as well. We just added this year a law enforcement defensive driving pursuit class.

• We are at the beginning stages of this initiative. The first stage is an increase in the awareness level for our sheriffs as to the issues related to operating a law enforcement vehicle.

• Enhanced training

• Driver training and investment in driving simulators

• Considering hiring a vendor to develop and maintain statewide jail policies and procedures

9MARSH



• Two years ago we started improving our current loss control program by putting some teeth into it. Last year we implemented a new safety dividend model that is more loss sensitive to reward and encourage good behavior. This year we implemented a Safety Incentive Discount Program to encourage members to improve their safety efforts by implementing basic standards and training. We have also made our members more aware of their losses due to little or no loss prevention.

• We have five full-time loss prevention specialists working to reduce exposures and train and educate county employees. We have a detention expert, attorney, safety specialist, and law enforcement expert on staff. Our pool board appropriated $295,000 for specialized detention training--we have had several excellent sessions with the National Institute of Corrections and the AJA. We have instituted a detention and sheriff accreditation program, and have adopted state-wide standards for detention centers. Almost 2/3 of our member counties are involved in our RAP (risk awareness program), a 50-week specialized training program for county government. We also have a workers' comp injury reduction incentive program, under which counties will receive monetary awards for those that have the highest percentage of reduction of comp claims.

10MARSH



• Seeing improved policies and operations, too early to see impact on losses

• We believe it is to a limited degree.

• Yes. We have added several new members in the past few years and Claims frequency is remaining flat.

• Gaining some momentum - Four sheriffs have expressed an interest in defensive driver training for their deputies

• Too early for us to tell

• We think and hope so

• We are seeing some positive results, but more needs to be done

• We have been seeing a reduction in the number and the severity of claims

• Has worked in other states

11MARSH


Do you use hired or contracted staff for loss control?

• Hired staff

• Hired for the most part, occasionally outside

• We have 5 loss control staff

• Hired - staff of three regional specialists, loss control manager, 1/2 time resource/admin specialist

• Both

• Contracted

• We use full-time employees, and occasionally contract with outside vendors

• In house staff

12MARSH


Approximately what percent of premium do you spend on loss control?

• Auto 0.8%, 1.2%, 55%, 2.7%, 0.28%, 10%, 1%

• General Liability 0.35%, 1.6%, 3.3%, 2.3%, 0.88%, 10%, 0.5%

• Law Enforcement/Jail Operations 0.8%, 2.4%, 10%, 0.03%, 0.35%, 60%, 2%

• Public Officials Liability 0.8%, 2.4%, 3.3%, 0%, 0.01%, 15%,1%

• Property .53%, 0.4%, 3.3%, 0.07%, 5%, 2%

• Total: 3.28%, 8%,1.53%, 1.6%, 1.5%

13MARSH

Open Discussion

• What do we need most help with?

• What top 5 loss control issues should we focus on?

• Considerations:– Maximum ROI– Drive the desired behaviors


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ROI FocusROI Focus


EFFICIENCYPRIDE


EFFICIENCYPRIDE

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ROI FocusROI Focus

14MARSH

Top 5 Public Entity ROI-Based Risk Control Initiatives

• Performance Measurement

• Accountability

• Communications

• Training & Feedback

• Tools & Equipment

15MARSH

Evolution of the Safety Process

SiteSafety/Ergo

Activities

OSHACompliance

ExperienceDriven

OSHAIncident

Rate

ProductionQuality

Effect on tax rate

StrategicBudget

Video,Coffee &

Doughnuts

NoMetrics

Audit/ScorecardResults

LossRuns

Methods

Metrics

Where are you… on your safety journey?

CRL Underwriting / Claims Management Meeting Risk Control Roundtable NOVEMBER 16, 2011 Thomas Hilgen...

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