Around AASCIF

British Columbia  

WorkSafeBC (the operating name of the Workers’ Compensation Board of British Columbia) started its 90th year of operations with lower rates for employers, higher maximum earnings coverage for workers, and several programs to father the goal of safer workplaces  and improved service. Average premiums are anticipated to fall to less than $1.70 per $100 of assessable payroll this year while the maximum insured earnings level rises to $64,400; at the “90% of net earnings” compensation rate; at maximum, that puts the weekly benefit at $838.67 tax free. As the workplace health and safety agency as well as the exclusive workers’ compensation insurer, WorkSafeBC continues to focus on prevention issues. The nearly seven hundred injuries that occur every day are clearly not acceptable. Through increased inspection and targeted intervention programs, and special initiative with small business and young/new workers, the near-term objective is to drive the lost-time injury rate to less than 3 per 100 person years of employment by 2009.

The most important internal project is the Claims Management Solutions initiative.  CMS program has finished its first phase and promises to streamlin e claims processes and systems in a cost-effective way that will improve access to data, increase confidence in decision-making and decrease time spent on administrative tasks. With our software partner Curam, and in cooperation with the Workplace Safety and Insurance Board of Ontario (WSIB), the first phase of the project was completed in 2006. The expertise of workers’ compensation systems in the design and testing will ensure the new system meets the legal, business and operational requirements of workers’ compensation systems. Slated for full operation in early 2008, CMS will enhance decision-making and transparency and allow our staff to be focused on customer service.

Colorado

• In a recent policyholder survey, Pinnacol Assurance received our highest-ever rating of 8.9 out of 10 points for overall customer satisfaction, which is significantly above the nationwide insurance industry norm of 8.2 and up from our 2005 score of 8.7. The survey measured policyholder satisfaction during 2006 in nine key areas: overall service quality, underwriting, claims handling, SelectNet (our medical provider network), loss prevention, telephone service, billing, Internet services, and likelihood of renewal. Survey respondents also gave Pinnacol a 9.0 rating on the likelihood of renewing their policies, an all-time high mark for the company and proof of our policyholders’ loyalty.
• Pinnacol’s return-to-work (RTW) specialists and communications team recently partnered to develop an innovative RTW CD-ROM for policyholders. It’s packed with step-by-step instructions on creating a RTW policy, designing modified-duty tasks, and completing the formal modified-duty job-offer process. The CD-ROM is an efficient, effective way to teach policyholders to implement a RTW program with minimal one-on-one assistance from Pinnacol’s RTW specialists.
• Pinnacol’s newly published Community Involvement Report shows how our community efforts not only benefit people in need, but they also help us improve employee satisfaction, our commitment to excellence, and our business relationships. In 2005 and 2006, Pinnacol employees volunteered 7,000 hours to organizations such as Big Brothers and Sisters of Colorado and Volunteers of America. They also donated over $143,000 to the United Way, Community Health Charities, and victims of Hurricane Katrina and the Asian tsunami. In addition, the Pinnacol Foundation awarded $237,000 in college scholarships over the last two years to children of injured workers. For a copy of this report, please contact Ivan Hurtado at 303-361-4774.

Hawaii 

HEMIC has formed a managing general agency, HEMIC Insurance Managers, Inc. (HIMI). HIMI will offer multi-line products from both admitted and non-admitted markets that complement HEMIC’s workers’ compensation product. All licensing is complete and negotiations are well underway with several “A” rated markets.

HEMIC has also signed an interactive rating agreement with A.M. Best. HEMIC expects the rating to be released prior to its 10-year anniversary celebration in July.

Kentucky

Other States Coverage
KEMI has partnered with Argonaut Insurance Company to provide a national market for Kentucky employers. The program will provide Kentucky agents with a valuable alternative for their other states operations.

National Underwriter Recognition
KEMI was recognized for a second time in a study conducted by the nationally distributed property and casualty insurance publication, National Underwriter. The article, entitled “Focused Insurance Carriers Still Lead NU’s Profit Pack,” was included in the December 4, 2006 edition of the publication. This second-ever study of property-casualty insurance companies conducted by the National Underwriter again ranked KEMI among the top 50 profit leading insurance companies and among the top 20 commercial lines writers in the nation.

Employee Wellness Program Unveiled
A new wellness campaign has KEMI employees eager to pursue healthier lifestyles. The campaign, named “beWell@KEMI”, allows employees to earn points and rewards for participating in a variety of health screenings, fitness programs and community events. In addition to each participant receiving a digital pedometer bearing KEMI’s logo, employees are eligible to earn prizes and recognition for their dedication to healthy living. KEMI management also announced that for 2007, all employees and their families are eligible for a new fitness reimbursement benefit.

Other News
KEMI is pleased to announce that Jenny Whitis, Human Resource Director and Katy Grachek, Human Resource Generalist recently earned their certification as Senior Professionals in Human Resources (SPHR). Obtaining the SPHR designation demonstrates successful completion of a rigorous, comprehensive examination in the field of human resource management as well as a commitment to stay up to date in the field through periodic recertification. Additionally, Ryan Worthen has been promoted to Communications Manager. Ryan has been an employee of KEMI since 2003 and has an extensive background in marketing and corporate communications.

 Jenny Whitis             Katy Grachek           Ryan Worthen

Louisiana

LWCC Announces New Director of Safety & Loss Prevention
Louisiana Workers’ Compensation Corporation (LWCC) has announced the hiring of Bruce Lambert as director of safety and loss prevention. In this position, Lambert will oversee the strategic direction for LWCC’s loss prevention services programs for policyholders.

Lambert previously was a safety management specialist and ergonomist for MEMIC in Portland, Maine. He also has held positions with the Maine Department of Environmental Protection and the U.S. Department of Navy. Lambert earned a B.S. degree in industrial technology from the University of Southern Maine. A Certified Safety Professional and a Certified Construction Health and Safety Technician, he is a member of the American Society of Safety Engineers and International Industrial Engineers.

LWCC Unveils Innovative Loss Prevention Software
Louisiana Workers’ Compensation Corporation (LWCC) has launched its new safety and loss prevention management software, SafetyNet. In-house developers, working with a team of loss prevention and underwriting representatives, designed this landmark program over a two-year period.

SafetyNet automates the LWCC loss prevention paperwork, allowing field representatives to collect policyholder data more accurately and efficiently. The system improves the workflows for loss prevention consultants in all phases of client relations — before, during and after a visit.

“With SafetyNet, we can capture all of the data necessary to implement class-specific safety programs,” said Mike Dileo, LWCC vice president of operations. “We are now able to measure the results of our loss prevention efforts and better assist our policyholders with reducing their claims frequency and severity.”

In the field, loss prevention consultants can electronically transport all of their documents via laptop computers. Utilizing interactive touchpad technology, SafetyNet allows the consultants to complete their basic evaluation report on-site with the policyholder.

Maine

Reaching The Top At Comp Summit
Last November, MEMIC held its 10th annual “MEMIC Comp Summit.” Approximately 500 MEMIC policyholders attended the conference for a chance to gain insight from specialized workshops on workers' comp and other important business topics. The recent conference focused specifically on leadership, giving policyholders the opportunity to define leadership through concrete examples and real-world experiences. Attendees of the conference were asked to complete surveys regarding their impressions of the event. Results from the survey proved that MEMIC, once again, offered tools that were found to be useful and valuable. On a scale of 1 to 5 (with 5 being the best), MEMIC earned a 4.43 in the category of “Value of Information”; a 4.51 in the category of “Overall Quality”; and a 4.40 in the category of “Applicability of Information”.

MEMIC Triples Annual Dividend
In 2006, MEMIC tripled its annual dividend to $12M. In November, more than 20,000 Maine employers benefited by receiving a check for approximately 8.6 percent of their 2003 paid premium. Including this dividend, MEMIC has returned more than $70M to its customers since 1998.

MEMIC Now Licensed in 37 States
MEMIC subsidiary, workers’ compensation specialty company MEMIC Indemnity Company, is now licensed in 37 states. MEMIC Indemnity (rated A- by A.M. Best) most recently added Minnesota, Montana, and Idaho to its growing roster.

Maryland

Results of the annual IWIF Customer Service Satisfaction Survey reveal 89 percent of Maryland’s largest 100 agents/brokers are satisfied with IWIF, as are 87 percent of policyholders. IWIF uses an independent market research firm to conduct its annual survey.

Regarding investment performance, IWIF’s core bond portfolio results ranked in the 20 th percentile nationwide for 2006. For the past 2-year period, it ranked in the first percentile. Robert E. Merritt, CFA, Executive Vice President and Chief Investment Officer, and David Hinks, Portfolio Manager, manage IWIF’s core bond portfolio .

To combat all forms of workers’ compensation insurance fraud in Maryland, IWIF will be offering to policyholders, prospective customers, and agents a comprehensive fraud kit this spring. The full-color kit, created internally, boasts fraud posters for employers, tips for preventing and detecting fraud, defines the different types of workers’ comp fraud, and illustrates recent fraud prosecutions spearheaded by IWIF’s Special Investigations Unit.

IWIF employees donated $40,414 to the Maryland Charity Campaign during the State’s 2006 fundraiser. In addition, IWIF matched the amount, bringing the total contribution to $80,828, about $1,200 more than the previous year. While IWIF and its employees perform many charitable acts throughout the community, the Maryland Charity Campaign is the biggest, collective charitable event supported by the organization.

IWIF’s board is currently conducting an open search for a new President and CEO. The Board Chairman, Daniel E. McKew, is serving as the company’s senior executive, a role he has performed during previous leadership transitions at IWIF.

Minnesota SFM President and CEO Pat Johnson has announced plans to retire this spring. “SFM is doing very well and has entered an exciting new era of growth. It’s a good time to transition its top leadership,” said Johnson, who has led the company since 1992. The board’s search committee expects to identify her successor in April. “I’ve appreciated the strong support and friendship in the AASCIF community,” she said, “and I’ll miss seeing all who have been such a great source of ideas and inspiration.”

SFM’s results for 2006:

• 94 percent customer retention, including 98 percent of large customers.
• 95 percent combined ratio.
• 67 percent of claims reported online.
• Very strong underlying customer base growth, with 3 percent growth in written premium.

SFM is developing its own “other states coverage” capability for out-of-state exposures of Minnesota and Wisconsin employers. SFM has already begun offering coverage for Iowa and South Dakota exposures, and its capabilities will expand as it completes licensure in additional states this year.

Work Comp Study Project Underway
Many have commented that the cost of workers’ compensation insurance in Montana seems higher than in other states, but the reasons behind that are not well understood. In an effort to objectively compare Montana’s workers’ compensation system (benefits, costs, and premiums) to other states, Governor Brian Schweitzer charged Lt. Governor John Bohlinger to spearhead a Workers’ Compensation Study Project. The goal of the project is to provide Montana’s policy makers with a benchmark data comparison with other similar states and determine which factors drive the costs of the insurance, and make proposals on how to improve the system. Montana State Fund has played an active role in this process. As part of the study project, a Labor/Management committee has been formed to continue the discussion and help craft recommendations for system wide improvement.

Preliminary findings of the study indicate that:

• Montana’s total benefit costs per worker are the highest among the 10 study states.
• Montana has a strikingly higher claim frequency.
• Medical costs per claim are higher.
• Current fee schedules create incentives for invasive treatment rather than primary care.
• Montana has a broader benefit structure.

Superior Customer Service
MSF staff recently kicked off its Through the Customer's Eyes customer service training program. This training is part of a multi year initiative to reinforce our message of superior service and delve deeper into the needs of our internal and external customers. The intensive three-hour curriculum was created and implemented by employees who applied to be a part of the customer service training team. The entire MSF staff attended the training. The curriculum will continue to be used as part of our new employee orientation.

NYSIF CEO David P. Wehner announced that NYSIF will host a series of regional policyholders’ educational forums in eight locations across the state this spring. These forums, first of their kind for NYSIF, are open to all current policyholders.

“The forums will focus on the most significant workers’ compensation and disability benefits issues facing employers,” Wehner said. “Our knowledgeable NYSIF team will host sessions regarding claims handling, risk management, preparing for an audit, combating fraud, return-to-work, and online services.”

NYSIF completed its most successful anti-fraud campaign in 2006 with 148 arrests representing restitution, additional billed premium and estimated future savings of $17 million.

CEO Wehner said NYSIF’s Division of Confidential Investigations leads the fight against workers’ compensation fraud in New York State.

“We have what we believe to be the best anti-fraud program among insurance carriers in the state and, certainly, one of the top special investigations units in the country.” He vowed to continue the crackdown in 2007.

NYSIF claimants and policyholders can now access frequently-requested information from NYSIF – Who’s my case manager? Who’s my underwriter? Where’s my check? – by visiting www.nysif.com.

Customers who don’t know their case manager, for example – the No.1 query received by NYSIF – can enter their NYSIF claim number, and retrieve the case manager’s name, direct phone number, fax number and e-mail address

William A. O’Loughlin, Jr., an investment advisor for almost 40 years, was named to NYSIF’s Board of Commissioners. Mr. O’Loughlin is branch manager of the O’Loughlin Financial Group and Brookstreet Securities in Williamsville, a suburb of Buffalo, New York.

By the time you are reading this edition of  “Around AASCIF,” more than $2 million dollars in safety grants will have been awarded to North Dakota businesses by Workforce Safety & Insurance (WSI). At the end of January, 2007, $1.9 million in grants through the Hazard Elimination Learning Program (HELP) for 113 different interventions had been already been awarded. And the applications keep coming in! The 5-to-1 matching grant program to eligible businesses in the state can provide them with up to $50,000 for an approved safety intervention, with WSI providing the lion’s share of the matching grant.

While the money is great the real purpose of HELP is to improve worker safety and conduct research on the effectiveness of each specific safety intervention. This research will be shared with other employers. By looking at worker safety before and after HELP interventions, employers get a clear picture of the effectiveness of specific interventions.  When the program runs its course in two years WSI and the employers should have a clearer picture of which safety intervention really reduces injuries in the workplace.

WSI has streamlined the process so employers know quickly if they qualify. A review board meets every other week to review the HELP applications submitted.  Applicants are notified of their decision within 24 hours of the Board meeting. The necessary paperwork for all successful applicants is sent within five days. Last session the North Dakota Legislature authorized that up to $35 million dollars could be spent on approved safety programs in North Dakota.

Ontario

New Functional Abilities Form supports improved RTW outcomes

After an extensive consultation process, the Workplace Safety and Insurance Board (WSIB) has developed and released a new Functional Abilities Form for Planning Early and Safe Return to Work. The form will provide workers and employers with a common frame of reference on the injured/ill worker’s ability to walk, stand, sit, lift, and perform other work-related tasks. Workers and employers can use the information on the form to identify jobs that are consistent with the worker’s physical condition following a work-related injury or illness.

New Chief Prevention and Chief Operating Officers

Tom Beegan, former CEO of Ireland’s Health and Safety Authority (HSA), has joined the WSIB as its new Chief Prevention Officer. Beegan’s five-year tenure with the HSA saw a shift in emphasis from operational inspection and enforcement towards more prevention-oriented programs and services.

John Slinger has been selected as the WSIB’s new Chief Operating Officer. Slinger has been with the WSIB since 1989 holding numerous positions within the organization, most recently as the Chief Corporate Services Officer.

Business Case for Workplace Safety

Preventing workplace injuries and illnesses makes good business sense. That’s the message WSIB Chair Steve Mahoney is taking to industry leaders across Ontario in 2007. Mahoney will encourage CEOs to sign the CEO Health & Safety Leadership Charter (www.ceosafety.com) and make a “top down” commitment to workplace injury and illness prevention. “Becoming leaders in health and safety can give any company a competitive edge,” says Mahoney. “Just look at the costs involved and it’s clear that fewer injuries and illnesses can improve a company’s bottom line.” For more on the WSIB’s prevention initiatives, visit www.prevent-it.ca.

• SAIF’s newly redesigned website, saif.com, is now live! The task-oriented site has been redesigned to be more efficient, simple, and easy to use and navigate. Each of our major customer groups—employers, workers, agents, and medical providers—now has its own section on saif.com, called a “guide.” All of the information needed by our customer groups, including forms, information, and resources, is contained within their specific guide.
• SAIF Chief Actuarial Officer Gordon Diss and SAIF Board-Appointed Consulting Actuary Richard Sherman were recently awarded the prestigious Dorweiller Prize for their paper describing and calculating the tail of workers’ compensation payments. The two actuaries presented their paper in San Francisco and accepted their prize before 1,500 of their fellow actuaries.
• SAIF recently mailed its newly redesigned policyholder magazine, Comp News, to nearly 50,000 customers. The new design includes an expanded page count, distinct sections, and an overall refreshed look. To receive a print copy of the magazine, email compnews@saif.com or view the magazine online in the Publications section of saif.com.

Pennsylvania

The Pennsylvania State Workers’ Insurance Fund (SWIF) recently hired experienced data entry personnel who specialize in medical bill input to enter a large surplus of medical bills. This allowed SWIF’s Medical Reviewers to reduce an existing medical bill backlog.

A concentrated training program was initiated by Senior Medical Supervisor Trudi Kane. Trudi integrated the data entry skills of the new staff with SWIF’s improved PowerComp computer technology system.

The results were obvious from the beginning. SWIF has now been able to bring an unusual high volume of medical bills to workable levels in a short period of time, thus eliminating the possibility of future backlog and delay.

By selecting a superior supervisor and providing top-notch training to a dedicated group of data entry specialists, SWIF is now able to maintain its reputation as a leading workers’ compensation insurance carrier in the state of Pennsylvania.

When it comes to safety, two-year old Mackenzie Senger knows what to do!

The WorkSafe Saskatchewan campaign is making headway with children, thanks to WorkSafe Bob, the campaign’s mascot. He’s prominent on the campaign’s television ads and billboards, and his public appearances always draw youngsters who want to meet him.

WorkSafe Bob’s impact on children really hit home when we heard from Mackenzie’s mother, Jennifer Senger.

When Jennifer drives Mackenzie to and from her daycare each day, two-year old Mackenzie passes two WorkSafe Saskatchewan billboards, featuring WorkSafe Bob. Mackenzie also has seen WorkSafe Bob at Saskatchewan Roughrider games, leading the third quarter stretch, and in TV ads promoting safety in the workplace. Many of the ads show WorkSafe Bob wearing a hardhat.

One day, Mackenzie noticed that WorkSafe Bob was not wearing his hardhat in one of the billboards, and she told her mom, “Bob is not safe without his hat”.

While the WorkSafe Saskatchewan advertising campaign has produced phenomenal results in raising awareness about workplace safety issues with adults, we were pleased to learn that it was having an impact on young people like Mackenzie.

Mackenzie recognizes the importance of safety in everything she does. She’s an avid football and hockey fan, and knows that it is important to wear the right equipment to be safe. And every time she gets in the car, she checks to make sure that everyone is wearing their seatbelt.

• The Texas Mutual Insurance Company special investigations department secured the largest premium fraud verdict in company history. A jury awarded the company over $5 million in actual damages and $2.5 million in punitive damages. The award is expected to exceed $8 million after prejudgment interest is calculated.
• Texas Mutual Insurance Company expanded the service areas of its new certified workers’ compensation health care network. The network is now available to approximately 95 percent of the company’s policyholders. Participating employers benefit from occupational health care services designed to help injured workers return to the job. Most also earn an annual network premium discount.
• Texas Mutual Insurance Company is monitoring a bill that would make the company exempt from the Open Records Act. Under the act, the company is required to release competitive information that other carriers do not have to share.