ACIG Brokers Meeting

1
ACIG Brokers Meeting

• Project Lifesaver
• Loss Reduction Initiative

Michael Overholt, ARM Account Executive January
28, 2005
2
Project Lifesaver

• Overview
• The strategic goal of Project Lifesaver is to
  reduce both the frequency and severity of losses.
• To achieve this goal we will need the support of
  all of our ACIG members.
• Reduce expected losses by 40 over a two year
  period, equates to 20M based on projected loss
  pick.
• Complete a year without a fatality Accomplished!

3
Project Lifesaver

• Baseline Year
• Policy Year June 1, 2003 04
• Expected Losses All Lines
• Contractors Retro/Deductible Layer 40,256,218
• Retained Pooled Layer 8,407,179
• Total 48,663,397
• Note Valued as of 01/05/2005 (PY2003).

4
Project Lifesaver

• Off to a Great Start
• PY 2003
• Expected Losses 48,663,397
• Total Losses 39,675,269
• Variance (8,988,128)
• On our way in achieving our goal.

5
Project Lifesaver

• The Great News
• Manhours are up ?
• Standard Premiums are up ? 14
• Frequency of Claims are down ?
• WC down 14
• GL down 22
• AL down 20
• Lost time accident rate down ? 14
• But, severity is up.
• WC cost per manhour (including IBNR) up 17
• WC cost per claim (including IBNE) up 37

6
Project Lifesaver

• Four Key Elements
• Ranking of ACIG contractors using objective data.
• Development of contractor specific Service Action
  Plans with an emphasis on Best Practices.
• Face-to-face meeting with the contractor CEO/COO
  and their key managers.
• Contractor Action Plan.

7
Strategic Planning Sessions

• Project Lifesaver Meetings
• ACIG developed meeting materials
• Historical Loss Analysis
• Contractor Ranking
• Best Practices Utilization (RMS, Safety, Claims)
• Participants
• Contractor CEO, COO, Safety/Risk Manager
• ACIG Service Team
• Broker
• Action Plan Developed by Contractor

8
Best Practices Sessions

• Contractor Steering Committee
• Two CEOs
• Two Presidents
• Two HR/Safety Managers
• General Session Introduction
• Industry Group Breakout Sessions
• Emphasis on Different Lines of Coverage
• Workers Compensation
• General Liability
• Auto Liability

9
Project Lifesaver

• Continuous Improvement Initiatives
• Added RMS best practices survey
• Added Claims best practices survey
• Added Fleet Safety guidelines survey
• Added PLS 2 score card
• Great job! Keep up the good work!