Measuring the Success

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• Measuring the Success
• of
• Return-to-Work Incentives
• May 29, 2008
• Bob Buchanan,
• Director of Risk Management
• www.khcargo.com

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Measuring the Success of Return-to-Work Incentives

• Purpose
• Share our road map for Success
• Return to Work Incentives

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Measuring the Success of Return-to-Work Incentives

• Where We Were

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Measuring the Success of Return-to-Work Incentives

• Workers Compensation Performance
• 2001-2006
• Claims - 3,770,000
• Indemnity Cost - 1,440,391
• Medical Cost - 1,960,078
• 4 Large Loss Cost - 2,100,000 (approx.)

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Measuring the Success of Return-to-Work Incentives

• January 6, 2003
• Insurance and risk management assessment for
  Kitty Hawk at the request of CEO Robert
• Zoller. The subsequent report to the CEO showed
  Kitty Hawk had an over all lack of attention
• to insurance and risk management issues on all
  levels. There was
• No formal safety program
• Frequency and severity in workers compensation
  claims - open, reserved, and lost time cases
• were off the charts.
• No light duty return to work program
• No favorable working relationship with any of our
  insurance companies. Insurance company
• relationship (especially AIG) were at best
  adversarial.
• An attitude that our insurance broker had been
  indifferent to our cost and coverage needs for
• some time.
• Missed financial and cash flow opportunities

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Measuring the Success of Return-to-Work
Incentives
Financial Challenges and Moral Decision

• Financial Costs of Employee Disabilities
• Drag on Productivity
• Company Culture
• Trust

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Measuring the Success of Return-to-Work Incentives
The Key

• Achieving Buy-In From Senior Management and Front
  Line Leadership and Others
• Developing Criteria For Success, Track
  Performance, and Establish Incentive Rewards
• Invest in Formal Safety Programs and Proper
  Safety Practices

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Measuring the Success of Return-to-Work Incentives
The Key
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Measuring the Success of Return-to-Work Incentives
The Key
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Measuring the Success of Return-to-Work Incentives
The Key
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Measuring the Success of Return-to-Work Incentives
Industry Partners

• AIG Aviation Safety and Loss Control
• AIG Claims Services
• AON Loss Control
• Occupational Doctors, Nurses, and Medical Clinics
• Other

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Measuring the Success of Return-to-Work
Incentives
Build the Foundation

• Safety Policy Statement
• Safety Manual
• WC Gatekeepers
• Safety Committee
• Safety Accountabilities
• Hiring Procedure for WC Issues
• Safety Incentive Awards
• Other

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Measuring the Success of Return-to-Work
Incentives
Gain Control

• Let Your People Know That They Are Protected
• Report All Accidents Immediately
• Get Certificates Of Insurance From Independent
  Contractors And Update Annually
• Educate Your Medical Care Providers
• Monthly Claims Review
• Identify And Place Employees Into Transitional
  Jobs
• Stay In Touch With Your Injured Worker

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Measuring the Success of Return-to-Work Incentives
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Measuring the Success of Return-to-Work Incentives
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Measuring the Success of Return-to-Work Incentives
The Annual Premium Savings 2001 vs. 2007 is in
Excess of 1,000,000
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Measuring the Success of Return-to-Work Incentives

• Success Brings to our Corporation
• Vast Gains In Employee Productivity And Morale
  Thru Low Accident/Injury Rate
• Improves Cash Flow For The Company
• Reduces Insurance Rates
• Return Of Prior Premiums/Deposits (Cash) Retro
• Better Terms And Conditions Can Be Negotiated
  With Underwriters
• Established Trust With Insurance Companies - More
  Willing To Help In Times Of Need.
• Annual Risk Management Review With The Board Of
  Directors Is Simplified

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Measuring the Success of Return-to-Work Incentives
415,752
209,750
VOID VOID VOID
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Measuring the Success of Return-to-Work Incentives
Special recognition to Bob Rutledge, CIE Safety
and Loss Control Manager AIG Aviation, Inc. 8144
Walnut Hill Lane 1600 Dallas, TX 75231 For
assistance with our safety programs and
preparation of this presentation. Thank You
Bob Buchanan, Director of Risk
Management Kitty Hawk, Inc. 301-748-1750 buchbs_at_ao
l.com www.khcargo.com
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Measuring the Success of Return-to-Work Incentives
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