1. MASI 16 th Annual Fall Conference September 25-27, 2013

2. 2012 Statistical Highlights There were 11,246 claims filed in 2012 that caused employees to miss work 5 or more days. There were 2,629 claims controverted in 2012. Hinds County was the county with the most occurrence of injuries with a total of 1,247 claims followed by Harrison county with 756 claims.

3. 2012 Statistical Highlights (continued) Females were reported less frequently with 4,502 claims (40.0%). Major injuries or illnesses occurred on Monday, with a total of 2,112 claims. March was reported most frequently as the month of occurrence with 1,053 claims or 9.4% followed by May with 1,034 claims or 9.2%. Strain was the leading nature of injury with 4,061 claims or 36.1%.

4. 2012 Statistical Highlights (continued) Lower Back -Lumbar was the part of body affected most with a total of 1,588 claims or 14.1% followed by Multiple Body Parts with a total of 1,493 claims or 13.3%. Lifting was the leading cause of injury with a total of 1,452 claims or 12.9%, followed by Strain/Injury with 927 claims. There were 67 fatalities reported in 2012. There were 7,606 claims received from Insurance carriers, 3,580 from Self- Insured employers.

11. Some Historical Data On SIG 10 active groups as of 1/1/2013 –Excluding state agencies –MMA – Rest – Comp Choice – Loggers Runoff only Earned Premiums –Forever to date $1.9B Cumulative surplus all groups $153.3m –This is net of $152m dividends distributed

12. G and A expenses – > 30% - 2 funds –20-30% - 3 funds – < 20% - 4 funds –Not including State Agencies Some Historical Data On SIG (cont’d)

21. NCCI Data Written premiums up 10% 2012 Following decrease 2006-2010 –Economic recession –Loss of Mfg & Const jobs –-Soft market Claims frequency down 1% 2011 –After increasing in 2010 for first time in 13 years –Project 2-3% decline 2012

22. NCCI Data (cont’d) Claim cost moderated –Indemnity cost Decline slightly 2010 Increase 2% 2011 –Medical cost per claim + 4% 2011 –Medical currently 60% of total losses

23. Interesting Changes Taking Place Oklahoma reforms –Authorized binding arbitration –Causation standard changed – must be “solely” result of injury –TTD reduced to 104 weeks – additional 52 weeks possible –Mental injuries 26 weeks –TTD rate reduced to 70% AWW (down from 100%) –PPD reduced to 350 weeks from 520 weeks –Fee schedule reduced 5%

24. Tennessee 2013 Reform –Administrator appointed by Gov. –Judges hired by administrator –Appeals 3 member review Board appointed by Gov., then to Supreme Court –PPD modified and capped at 3 times rating Interesting Changes Taking Place (cont’d)