SELF INSURANCE Where are we, really?And where are we going?

Preston Williams – Self Insurance Director MWCCWith special thanks to Chris Burkhalter and Sonny Blackwell

So, where are we? (really?)

Soft market, not enough premium for groups; and Individual companies are being wooed by insurance carriers, premiums are too good to pass up

Companies don’t do enough to protect their workers

Companies don’t do enough to protect their workers, oh REALLY?

More police officers die in traffic accidents than felonious assaults!

And more shoot themselves than others!

Last year there were only 48 deaths in MS as a result worker injury or illness. Nine of these (19%) were caused by vehicle mishaps.

Why safety programs get no Why safety programs get no respect!respect! Perceived as a cost Perceived as corporate overhead No line accountability Focus on “things” and reports Inconsistent implementation Punitive orientation “Activity” based (more important than

production)

Don’t communicate in business terms.

Traditional LeanTraditional Lean

Compliance based Enforcement Imposed Cost

Success oriented Performance Embraced Investment

Avoid failure Achieve success

WC Caim Count / Total Incurred

(Value Date 6/2010)

0

5

10

15

20

25

30

35

Jan-

08

Feb

-08

Mar

-08

Apr

-08

May

-08

Jun-

08

Jul-0

8

Aug

-08

Sep

-08

Oct

-08

Nov

-08

Dec

-08

Jan-

09

Feb

-09

Mar

-09

Apr

-09

May

-09

Jun-

09

Jul-0

9

Aug

-09

Sep

-09

Oct

-09

Nov

-09

Dec

-09

Jan-

10

Feb

-10

Mar

-10

Apr

-10

May

-10

Jun-

10

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

WC Claim Count Total Incurred

Total Incurred June 08-May09 $429,515Total Incurred June 09-May10 $155,432Improvement $337,083Fully loaded investment $ 60,400

ROI = x 100 = 458% ($337,083-$60,400) $60,400

From the Clarion Ledger

Mississippi has some of the highest rates of chronic illnesses like diabetes, obesity and heart disease.

"We have to do something to get health care costs under control," Hill said. "It's important not only for the health of our citizens, but also for the health of our budget."

In a perfect business world

We would always hire the best candidate for the job

We would live in a drug free environment

We would have Wellness programs & high morale

But wait! In this economy…

You can prescreen You can drug test You can, and should, have an “on

board” program You can have wellness programs You can show employees you give a

damn!

Soft market, not enough premium for groups

We are in recession, less payrolls/premiums for all

Yet surplus overall is approaching a ten year high

In Self Insurance

Not controlling losses directly drives YOUR costs up!

The only one that must make a profit is you!

Everyone else is overhead and looking to you for their profit!

This is PROFIT! The Falcon, USF&G’s $25 million plane

Next up - A slide from yesteryear! (Or 2008)

Prices are coming down this year, next year and maybe even in 2010

But then Prices are going up and remember Agents can control their accounts;

not the carriers Cost and profit margins will be

paid by the policyholders to the stockholders (The real customers!)

Critical Issues Education is critical, your board, your

bosses, your clients, yourselves Beware of due diligence or CBA, there

is no one better than you! A retiring expert shared his one

secret… return to work is everything But really.... The only good accident is

the one that never happens If you outsource claims, MAKE SURE

you are TOTALLY INVOLVED!

Pick your own quote!

EVERYTHING COUNTS AND EVERYONE MATTERS- W. R. Berkley

Do what you can, with what you have, where you are- T. Roosevelt

Do you have twenty years of experience or one year 20 times?

Whether Individual or Group Remember:

Pigs get fat Hogs get slaughtered