Workers Compensation Program Overview

In This Presentation About Sunbelt Insurance Holdings

Workers compensation program background

Our partners

Workers compensation cost drivers

Tailored solutions for the long term

Workers Compensation Program PROGRAM BACKGROUND

Created in 2009 from scratch.

Designed to address the needs of high risk clients and hard to place exposures.

Core competency: addressing true WC cost drivers and catalysts for long term premium increase.

Secondary competency was market access and placement.

Tertiary focus was near term premium reduction through policy brokerage.

WHERE WE ARE TODAY

Program focus still centers on addressing catalysts for long term premium increase.

Unparalleled market access as a result of focused expertise.

Portfolio includes the most advanced work comp solutions includingGuaranteed cost programs, performance based dividend

programs, loss sensitive retrospective plans, collateralized deductible programs, captive insurance solutions.

Currently serve 1,140 policy holders, over 5,000 employees, and over 2,500 independent contractors in 26 states across the U.S. (*BOB data as of 05/2015)

Year over year growth in excess of 100% for last 24 consecutive months with client retention in excess of 90% over the same period..

Our Carrier Partners Not a complete list.

Our Ancillary Partners

Our Clients

Our Focus - Workers Compensation Cost Drivers NON CONTROLLABLE

State posted manual rates

Industry loss trends

NCCI industry statistical rating data & factors

Carrier appetites and filed rate deviations

Premium discount schedules

Your competition’s performance

CONTROLLABLE

Your Experience Mod

The Experience Mod WHAT IS IT?

Simply expressed, the mod is a ratio of actual losses to expected losses over a 3 year period.

If your actual losses are more than expected, then your mod is over 1.0.

If your actual losses are less than expected, then your mod is under 1.0

A mod of 1.0 is exactly average. How much better than average are you, or would you like to be?

Your mod determines your final workers compensation costs – your premiums equal the manual premium multiplied by our mod.

WHAT CAUSES IT TO CHANGE?

In order of importance:

Frequency of claim – indicated by “primary losses”

Severity of claim – indicated by “excess losses”

Incorrect reporting of claim data

Misclassification of payroll

Industry peer performance

Payroll / Premium size

Solutions – The to do list…. Reduce

frequency of losses

Reduce severity of losses

Review experience mod

for accuracy

Correct errors prior to the unit state filing date

Assure that your WC classification

is correctAddress fraud

And who does all of this…..

Our comprehensive solutions ….We do!

Frequency

Preventative safety measures such as on site training*

Claims Triage

Severity

Comp claims management (calculation, reserves, &

filings)

Return to work programs & light duty

Data & Claim Accuracy

Review of WC classifications

Annual review of e-mod for accuracy

Correction of reserves prior to unit stat filing

Fraud

Employee Background checks

SIU fraud analysis

Claims shadowing

Surveillance

Medical/Hospital Canvasing

Court & county record retrieval

Subrogation & apportionment

The Results - Reduced costs in perpetuity!

We seek to accomplish the following:

Reduce frequency of claim by up to 30%.

Keep severity of claim to an absolute minimum. Reduce/Eliminate non “type 6” claims. Eliminate indemnity compensation entirely.

Assist clients in achieving their minimum statistical e-mod (maximum performance).

Reduce fraud to zero.

Maximize policy purchase options at renewal.

Maintain a happy and positive workforce through the process.

Tailored solutions for our clients…

We work with clients to determine what portion of our client solution portfolio fits their unique situation.

Select & implement relevant solutions.

Set mutually agreed upon performance goals.

Track, measure, and report performance.

Re-position and repeat year over year.

Note – Sunbelt designs a custom cost sharing program to fund the implementation of our solutions.

End of presentation Thank you for your time & consideration.