James J Moore E-Mod LDF Presentation With Slides Available

E-Mods and LDF’s_NC Midstate_12_13_16 <<<Slides – File is 7mb

Our founder, James J Moore E-Mod LDF presentation went well at the NC Mid State Safety Council’s Winter Lunch and Learn training session.

Raleigh North Carolina James J Moore E-Mod LDF Map

Wikipedia – Alexrk2

The slides from the presentation are available for download at this link. The session was a smaller group in intimate surroundings at Coty Inc in Sanford NC.

The main takeaways from the presentation were:

A Safety Officer or Safety Department along with Risk Management can be summed up in one score (the LDF or E-Mod)
Companies and governmental organizations are examining these two departments much more closely in the coming “age of the reduction”
Any safety person should know their Experience Mod number. The staff may be judged by that number alone.
Workers Compensation is a delayed system, what you do in safety today may not show up in your WC program for years.
The old adage of ” I am involved with Safety – the E-Mods are covered in another department” does not fly any longer.
We are out of the Workers Comp system does not apply to large deductible programs or self insureds.
Safety and Risk Management personnel and complete departments have been eliminated before the results of their efforts were even calculated
StockUnlimited
The Schedule Rating Factor can more accurately reflect Safety and Risk Management’s current efforts.
The Schedule Rating Factor has many elements in it from Safety and Risk Management
Your E-Mod or LDF is like a personal credit score from hell.

An attempt will be made to attach the slides to the presentation if it is not too data intensive. The attached file will be in PowerPoint 2013. Today’s James J Moore E-Mod Ldf presentation was a standard presentation that he gives a few times a year.

©J&L Risk Management Inc Copyright Notice

Largest Workers Comp Concern Today Seen As Split Points

The Split Points became the Largest Workers Comp concern presently. I am presenting at the North Carolina Mid State Safety Council conference tomorrow. A few weeks ago I was contemplating what would be the largest concern for safety, human resource, and risk management personnel.

Picture Of Hand Touching Largest Workers Comp Concern Question Icon

StockUnlimited

After speaking with a few of my peers and our clients, the subject of the upcoming NCCI and State Rating Bureaus (other than CA, OH, and NJ) split points came up as the most popular topic of concern. My question to my peers was “Why are split points the topic that is causing the greatest concern presently?”

I received many different answers. The top one was the way our Workers Comp is calculated will now change very quickly at our next renewal.

The other concerns were:

A new variable that may cause an increase to our E-Mod that is beyond our control
We cannot budget for the unknown increase, if there is going to be one
There is a 100% increase in the Primary Loss the first year
There are subsequent increases in the Primary Loss for the next two years
If we go over 1.0 on our E-mod, we cannot bid on government contracts
We are confused as to whether or not our next policy renewal will be affected

Business Strategy Concept Largest Workers Comp Concern Vector

123RF

When I looked over all of the concerns I had received and went back to the responses to my previous posts on this subject, I think the main area of concern can be summed up by saying there is now an unknown variable thrown into the mix that a company cannot prepare for in the future.

My response to that concern would be:

NCCI said only 18% of the companies would be affected. I analyzed one of the reports that came up with this %. I had thought it would be at least 25%
If your E-Mod is .9 or lower, you may actually see a decrease in your E-Mod if your Workers Comp claims status is not worse than in the past
If you have many smaller claims (less than 10,000), your E-mod will likely increase heavily no matter your current E-Mod. The new rating system is going to very heavily penalize employers with multiple injuries.
Your safety and risk management departments are now going to become more of a critical component to your business. If your company has considered WC just a cost of doing business, you may want to get out the checkbook and make sure you have plenty of checks.
(c) 123rf.com
If your company has an E-Mod of 1.2 or higher, you need to take drastic steps to reduce your injury rate.
The reserves on all of your Workers Comp claims will now be even more important. If you do not have online access, it may be good to check with your carrier to see if online access is available. When choosing among carriers at renewal, online access to your WC claims is now even more important
Alternative insurance arrangements such as large deductibles, PEO’s, self insurance, loss groups, risk retention groups, and captives may now be more attractive and cost effective
If your company is in the Assigned Risk Pool because you cannot find coverage in the voluntary marketplace, you need to immediately institute or increase the efforts of your safety program. You may also want to begin considering viable alternative insurance arrangements.

If you are not in a state that is going to be affected by the split point changes, then now is a good time to start preparing for the change. Most states eventually follow NCCI’s lead.