1. LAORM Loss Prevention Targeted Risk Improvement Program

2. Program Overview Reduce claims cost through a consultative approach to Loss Prevention. Reduce claims cost through a consultative approach to Loss Prevention. Target/Benchmark agencies by use of Cost Per Man-hour (CPH) methodology. Target/Benchmark agencies by use of Cost Per Man-hour (CPH) methodology. Refocus & enhance the agencies current efforts from a LP standpoint. Refocus & enhance the agencies current efforts from a LP standpoint.

3. Program Facts 2010 WC claims cost the state 30.2 ¢ per man-hour worked A reduction of just 1 ¢ per man-hour would save the state $1.9 million in claims cost in a years time. A reduction rate of 1 ¢ per man-hour would result in a cumulative savings of $18.6 million in claims cost over the next 4 years. Maximum results can only be achieved through commitment, cooperation and support at all levels. 2010 WC claims cost the state 30.2 ¢ per man-hour worked A reduction of just 1 ¢ per man-hour would save the state $1.9 million in claims cost in a years time. A reduction rate of 1 ¢ per man-hour would result in a cumulative savings of $18.6 million in claims cost over the next 4 years. Maximum results can only be achieved through commitment, cooperation and support at all levels.

4. How is the CPH Calculated: Total number of hours worked per year divided by the total claims cost for that year. Total number of hours worked per year divided by the total claims cost for that year. Avg. cost per hour that goes towards WC claims cost. Avg. cost per hour that goes towards WC claims cost.

5. Top Performing Agencies: AgencyCPH Department of Natural Resources$0.00 Department of Public Service$0.00 Department of Economic Development$0.02 Secretary of State$0.02 Department of Environmental Quality$0.04 Employee Benefits$0.06 Louisiana Judiciary$0.07 Department of Education$0.08 Department of Civil Service$0.08 Louisiana Technical Colleges$0.08 Southern University Systems$0.08 Office of the State Treasurer$0.08 Louisiana Boards & Commissions$0.09 Louisiana Legislature$0.11 Office of Workers Compensation$0.12 Department of Social Services$0.13 Division of Administration$0.14

6. Currently, fourteen agencies are participating in the Targeted Risk Improvement Program Currently, fourteen agencies are participating in the Targeted Risk Improvement Program Agency Participation:

7. Identify agencies/locations in need of additional LP support Identify agencies/locations in need of additional LP support Publish CPH findings & invite agencies to participate in the Program. Publish CPH findings & invite agencies to participate in the Program. LP Consultant conducts detailed loss analysis by Line of Coverage (i.e., Workers Comp, General Liability, Commercial Auto, etc.), accident type, occupation, location, etc. LP Consultant conducts detailed loss analysis by Line of Coverage (i.e., Workers Comp, General Liability, Commercial Auto, etc.), accident type, occupation, location, etc. The Targeted Process:

8. Process, cont… LP Consultant will meet with agency representative to review loss data, establish program goals, and review process protocol.LP Consultant will meet with agency representative to review loss data, establish program goals, and review process protocol. Work alongside agencies’ LP Coordinators to find solutions that meet the agencies needs and budget constraints. Work alongside agencies’ LP Coordinators to find solutions that meet the agencies needs and budget constraints. Discuss & recommend tools available to the agency. Discuss & recommend tools available to the agency. Monitor Results. Monitor Results.

9. TRIP Basics iCOW (Internet Claims Opening Wizard) iCOW (Internet Claims Opening Wizard) Trending Reports Trending Reports ◦Accident Type by Incurred Amount (WC) ◦Cumulative Loss Run (WC & GL) ◦NWC Claim Classification by Incurred Amount ◦Claimant with Multiple Claims (WC) Identify Loss Drivers Identify Loss Drivers

10. TRIP Basics, cont… Types of Loss ◦Workers’ Compensation ◦General Liability  Personal injury to non-employees and damage to property of others ◦Property  Damage to building/premises, equipment, or materials ◦Transportation  Auto liability, physical damage, fleet management

11. TRIP Partnerships Executive Staff Managers/Supervisors Safety Coordinator Internal Auditor Human Resource Managers/Personnel Operations Manager Special Divisions (Dietary, Medical, Security, Safety Committee) Executive Staff Managers/Supervisors Safety Coordinator Internal Auditor Human Resource Managers/Personnel Operations Manager Special Divisions (Dietary, Medical, Security, Safety Committee)

12. TRIP Examine alternative techniques to reduce/eliminate exposure Identify solutions that fit the management team’s style Solutions must fit the agency’s budget and staffing situation Encourage establishment best practices Identify strengths as well as opportunities within the agency Examine alternative techniques to reduce/eliminate exposure Identify solutions that fit the management team’s style Solutions must fit the agency’s budget and staffing situation Encourage establishment best practices Identify strengths as well as opportunities within the agency

13. Thank You for Attending! Jealena Gros Loss Prevention Officer Targeted Risk Improvement Program Consultant FARA Risk Control Services 400 East Kaliste Saloom Rd, Suite 4500 Lafayette, LA 70508 (877) 586-3272 ext 2778 | Toll Free (337) 408 - 2778 | Direct Line (337) 235-4118 | Fax Jealena.Gros@fara.comJealena.Gros@fara.com | Email www.fara.comwww.fara.com | Web