2. COMMISSION STATISTICS New Claims Remain Flat 2014 – 11,003 2013 – 10,772 2012 – 11,246 1994 – 20,557

3. COMMISSION STATISTICS (cont’d) Appeals To Supreme Court 2012 – 42 2013 – 21 2014 – 31 2015 YTD - 14

4. COMMISSION STATISTICS (cont’d) FC Hearings 2012 – 72 2013 – 71 2014 – 75 2015 YTD – 38

5. SUPREME COURT DECISIONS Decisions By Supreme Court 2012, 2013, 2014, 2015 YTD Total Number of Rulings WC Cases 68 Cases that Affirmed the Commission 56 Cases Reversing and Remanding 8 Cases Affirmed in Part, Reversed in Part 4

6. MWCC Technology Update Website Redesign – new modern look and feel coming in the next few months ATOS Expansion – Implemented new interface in January ’15 Automatic email notices to parties on ATOS filings Many document types accepted automatically – Accepting 71 document types – Over 300 attorneys

7. National Insurance Market Combined ratio continues to improve – 2014 – 98 First underwriting gain since 2006 Net written premium 2014 $38.5 billion – +4.6% over 2013 2013 showed 4.5% increase over 2012

8. Opt-Out Activities Texas Until 2013 Texas was only state giving employers choice of whether to subscribe to W.C. system Nonsubscribers lose the exclusive remedy provision Some nonsubscribers have developed their own occupational benefit plans, while others have no benefit program for injured workers TX Dept. of Insurance estimates about 1/3 of TX employers (119,000) are nonsubscribers Twenty percent (20%) of employees (1.9 million) work for nonsubscribers Of those 470,000 workers have no occupational benefit plan TX W.C. system scheduled to sunset in 2017 The legislature will undertake comprehensive review

9. Opt-Out Activities Oklahoma Signed into law by Governor Mary Fallin May 2013 and became effective Feb 1, 2014 Employers must meet certain financial and other requirements to qualify including a written benefit plan that provides coverage and benefits that meet or exceed the minimum requirements set forth in the law Private employer plans must also comply with ERISA The plans provide the exclusive remedy for qualified employers New law withstood a State Supreme Court challenge in 2013 Many stakeholders expect additional legal challenges

10. Opt-Out Activities Tennessee Feb. 2014 Senator Mark Green and Representative Jeffrey Durham proposed legislation to allow opt-out Their aim to make W.C. system more efficient and cut costs Proposed law would change way permanent partial disability is calculated Create Medical Advisory Committee in effort to reduce medical cost The bill would cap benefits at 156 weeks or 3 years unless medical expense exceeds $300,000 Employers would have to prove its financially able to establish its own program

11. Association for Responsible Alternatives to W.C. (ARAWC) When W.C. laws began in early 1900’s, it was a very different workforce – more focused on industrial jobs and there were a lot more hazardous conditions The W.C. statutes created in early 1900’s, to a large degree, are the same today but with a really different workforce The leaders in nonsubscribers are generally from industries with fewer catastrophic injuries, such as retailers, restaurants, hair salons, etc. ARAWC believes the alternative system is centered on particular geographic areas – central – southern area Virtually no talk in northeast Most likely states – Florida, Georgia, Mississippi, Alabama, Arkansas and some midwestern states and possibly Arizona and Utah

12. Athletes & Workers’ Compensation Chicago based NLRB regional director found that a group of Northwestern University football players were employees of the university and have right to form a union and bargain collectively They are seeking: Increased scholarships Coverage for sports related medical expenses Improve graduation rates with help from educational trust fund Secure due process

13. Athletes & Workers’ Compensation (cont’d) Workers’ Comp Implications Would comp carriers be interested in this new market? College athletes would be entitled to same benefits as other employees Indemnity – would this be the end of scholarships in favor of Pay for Play? Would they be subject to wage & hour laws? District Court in California ruled to force NCAA to allow colleges to pay athletes $5,000 per year 9 th U.S. Circuit Court of Appeals placed a stay

14. SIG STATISTICS Number of Groups 1994 – 19 2005 – 15 Current - 10

15. 2015 BENCHMARK STUDY CURRENT ACTIVE GROUPS 9 GROUPS – STATE AGENCIES EXCLUDED

29. CLAIMS PD SIG vs INS CO PD