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08-06-2014 Budget Workshop_Workers Compensation Overview & Renewal ReviewVILLAGE OF NORTH PALM BEACH Workers Compensation Overview 1 Re..vi Re n P w ew Presented by: Ellen Jones, Director - Risk Management Kurt Gehring, CEO GET-TRING A GROUP I N S U R A N C E B R O K E R S A & C 0 N 5 U LTA N T 5 Items for Discussion • Overview — Three year rolling claims history — Experience Modification Factor (Mod.) Payroll and losses included in formula Frequency & Severity = Losses 2014 Mod. 1.29 — Safety Reviews Continued employee involvement Safety culture emphasis Training Presumption claims 2 GEHRING AGROUP INSURANCE BROKERS/ B CONSULTANTS Items for Discussion Cont. • Fiscal Year 2013/2014 — High Renewal Option received from PGIT $346,125 — Gehring Group obtains FMIT proposal $261,679 3 GEHRING AGROUP I N S U R A N C E B R O K E R 5, & C ON S U L T ANTS Village of North Palm Beach Florida Municipal Insurance Trust (FMIT) Workers' Compensation Insurance Proposal Effective October 1, 2014 F 14 s V RA N L! H M V K:XS.A 10 CG N S L r A N— s ,0 free) z FMIT Proposal Total Estimated Annual Payroll $ 9,015,359 10,683,515 AR Adjustment $ (28,791) Manual Premium $ 402,218 $ 424,518 Drug Free Workplace Credit (5%) $ (19,709) $ (21,226) Safety Credit (2%) $ (8,044 $ (8,430) Discounted Premium $ 374,465 $ 374,4 ,65 Mod Rate - 1.29 $ 52,425 $ 108,595 Normal Premium $ 426,890 $ 483,060 Advance Discount $ (43,679) $ (43,679) Expense Constant $ 200 $ 200 Incentive Credit $ (134,1931 $ (146,486) Annual Premium $ 2.49,218 $ 293,095 Gehring Group Service Fee (5%)* $ 12,461 $ 14,655 Annual Net Premium 261,679 $ 307,750 S tncreaselDecrease NIA 46,071 fncreasefDecrease NIA 19% T 0 Claims and Insurance Projection Policy Year 2013/2014 aS July 3o,2o14 — Loss Ratio to Date — Claims Costs Paid to Date — Reserves — Total Incurred Costs /Losses — Number of Claims to Date — Average Claims Cost to Date — Experience Modification Factor — Shock Claim (1) - Presumption 144% $149,962 163 139 $313,022 19 $16,474 1.14 $247,500 5 GEHRING AGROUP I N S U R A N C E B R O K E R 5, & C ON S U L T ANTS 0 Claims and Insurance Projection Policy Year 2012/2013 — Loss Ratio — Claims Costs Paid to Date — Reserves — Total Incurred Costs /Losses — Number of Claims to Date — Average Claims Cost to Date — Experience Modification Factor — Major Claims 4 > $45k 125% $278,998 $43,008 $322,005 35 $9,200 1.02 $214,000 6 GEHRING AGROUP I N S U R A N C E B R O K E R 5, & C ON S U L T ANTS 11 Claims and Insurance Projection Policy Year 2011/2012 — Loss Ratio — Claims Costs Paid to Date — Reserves — Total Incurred Costs /Losses — Number of Claims to Date — Average Claims Cost to Date — Experience Modification Factor — Shock Claim (1) 64% $114,352 $14,748 $129,100 20 $6,455 .83 $61,000 5 GEHRING AGROUP I N S U R A N C E B R O K E R 5, & C ON S U L T ANTS 0 Claims and Insurance Projection Policy Year 2010/2011 — Loss Ratio — Claims Costs Paid to Date — Reserves — Total Incurred Costs /Losses — Number of Claims to Date — Average Claims Cost to Date — Experience Modification Factor — Shock Claims (1) - Presumption 266 $498,172 $7,625 $505,797 zo $25,289 .92 $426,000 5 GEHRING AGROUP I N S U R A N C E B R O K E R 5, & C ON S U L T ANTS E Total Incurred Losses by Policy Year $600,000 $505,797 $500,000 $400,000 $300,000 $200,000 $123,874 $100,000 4' $0 $129,1,00 i $322,005 $313,022 2009/10 2010/11 2011/12 2012/13 2013/14 GEHRING AGROUP I N 5 U R A N C E B R O K E R 5, & C ON S U L T ANTS Discussion Quest*ions GEHRING ,AGROUP INSURANCE BROKERS/ B CONSULTANTS