CRL Underwriting / Claims Management Meeting Risk Control Roundtable NOVEMBER 16, 2011 Thomas Hilgen SVP, Workforce Strategies Charlotte, NC

MARSH 1 October 5, 2015 Risk Control Roundtable What are you currently doing? How are you staffed? How do you integrate Risk Control and Underwriting?

MARSH 2 October 5, 2015 Pre-Employment Job descriptions Physical job demands screening Workplace safety & health policies Employment Hiring practices Pre-placement screening Drug-screening / testing Criminal background checks Training Employee orientation Safety training programs Workplace Safety Safety committees Safety & health activities Ergonomics Slip/Fall Prevention Motor Vehicle Post-Accident Medical response Selection of medical providers Post-accident communication with employees Cost Containment Claims mgmt performance stds. Direct Medical care to assigned provider No supplementing workers’ comp Return-to-Work Physical capability assessment Workplace accommodations Transitional duty assignments Continuous Improvement Performance measurements Safety & health audits Cost allocation Work-Related Incident Prompt reporting Accident investigation Pre-Loss Activities Post-Loss Activities The Loss Continuum

MARSH 3 October 5, 2015 The Effect of a Formalized and Effective Return-to-Work Process Restricted Duty and Lost Time

MARSH 4 October 5, 2015 Risk Control Strategies Model

MARSH 5 October 5, 2015 ROI-Based Focus

MARSH 6 October 5, 2015 Survey Results: Question 1 What is the most important loss control issue facing your pool today? Law enforcement jail operations Lack of funds by county government Automobile accidents Developing a system to aid Sheriffs in reducing the frequency and severity of law enforcement vehicle crashes & collisions Law Enforcement Altercations (both for imprisoned and arrestees) Automobile liability claims, medical care of inmates Getting the participants to buy into the program and take Loss control recommendations seriously Exposure for county jails, followed by sheriff's department (GL and comp) Inmate claims

MARSH 7 October 5, 2015 Survey Results: Question 2 What are you doing to address this issue? Model policies and procedures, hired law enforcement specialist, law helpline; regional seminars Implementing risk management programs that provide financial assistance to counties We have 5 National safety Council Driving instructors teaching various defensive driving courses. We use a driving simulator as training as well. We just added this year a law enforcement defensive driving pursuit class. We are at the beginning stages of this initiative. The first stage is an increase in the awareness level for our sheriffs as to the issues related to operating a law enforcement vehicle. Enhanced training Driver training and investment in driving simulators Considering hiring a vendor to develop and maintain statewide jail policies and procedures

MARSH 8 October 5, 2015 Survey Results: Question 2 What are you doing to address this issue? Two years ago we started improving our current loss control program by putting some teeth into it. Last year we implemented a new safety dividend model that is more loss sensitive to reward and encourage good behavior. This year we implemented a Safety Incentive Discount Program to encourage members to improve their safety efforts by implementing basic standards and training. We have also made our members more aware of their losses due to little or no loss prevention. We have five full-time loss prevention specialists working to reduce exposures and train and educate county employees. We have a detention expert, attorney, safety specialist, and law enforcement expert on staff. Our pool board appropriated $295,000 for specialized detention training--we have had several excellent sessions with the National Institute of Corrections and the AJA. We have instituted a detention and sheriff accreditation program, and have adopted state-wide standards for detention centers. Almost 2/3 of our member counties are involved in our RAP (risk awareness program), a 50-week specialized training program for county government. We also have a workers' comp injury reduction incentive program, under which counties will receive monetary awards for those that have the highest percentage of reduction of comp claims.

MARSH 9 October 5, 2015 Survey Results: Question 3 What are you doing to address this issue? Seeing improved policies and operations, too early to see impact on losses We believe it is to a limited degree. Yes. We have added several new members in the past few years and Claims frequency is remaining flat. Gaining some momentum - Four sheriffs have expressed an interest in defensive driver training for their deputies Too early for us to tell We think and hope so We are seeing some positive results, but more needs to be done We have been seeing a reduction in the number and the severity of claims Has worked in other states

MARSH 10 October 5, 2015 Survey Results: Question 4 Do you use hired or contracted staff for loss control? Hired staff Hired for the most part, occasionally outside We have 5 loss control staff Hired - staff of three regional specialists, loss control manager, 1/2 time resource/admin specialist Both Contracted We use full-time employees, and occasionally contract with outside vendors In house staff

MARSH 11 October 5, 2015 Survey Results: Question 5 Approximately what percent of premium do you spend on loss control? Auto 0.8%, 1.2%, 55%, 2.7%, 0.28%, 10%, 1% General Liability 0.35%, 1.6%, 3.3%, 2.3%, 0.88%, 10%, 0.5% Law Enforcement/Jail Operations 0.8%, 2.4%, 10%, 0.03%, 0.35%, 60%, 2% Public Officials Liability 0.8%, 2.4%, 3.3%, 0%, 0.01%, 15%,1% Property.53%, 0.4%, 3.3%, 0.07%, 5%, 2% Total: 3.28%, 8%,1.53%, 1.6%, 1.5%

MARSH 12 October 5, 2015 Open Discussion What do we need most help with? What top 5 loss control issues should we focus on? Considerations: –Maximum ROI –Drive the desired behaviors

MARSH 13 October 5, 2015 Top 5 Public Entity ROI-Based Risk Control Initiatives Performance Measurement Accountability Communications Training & Feedback Tools & Equipment

MARSH 14 October 5, 2015 Evolution of the Safety Process Site Safety/Ergo Activities OSHA Compliance Experience Driven OSHA Incident Rate Production Quality Effect on tax rate Strategic Budget Video, Coffee & Doughnuts No Metrics Audit/Scorecard Results Loss Runs Methods Metrics Where are you… on your safety journey?