Massachussets Interlocal Insurance Association (MIIA)

GoalsEvaluate Effectiveness of Risk Control Efforts

Focus on individual programs (auto, WC)Compare overall trends to Other Municipal Pools

Enhance Future Risk Control Efforts: Cost DriversCause of LossDepartment

Coverages: WC, Property/Liability, Professional Liability

Professional Liability

Existing Safety ProgramMIIA Rewards

Various training for loss prevention in all lines of businessStarted September 2002

Professional Liability Loss Control ToolkitStarted January 2003

Public Officials LiabilityLoss Cost Trend

6.0% Annual Trend

* Loss Cost equals projected expected Ultimate Loss &ALAE / Population

Law Enforcement LiabilityLoss Cost Trend

6.0% Annual Trend

* Loss Cost equals projected expected Ultimate Loss &ALAE / # Officers

School Boards LiabilityLoss Cost Trend

6.0% Annual Trend

* Loss Cost equals projected expected Ultimate Loss &ALAE / # Students

Professional LiabilityCosts by Department

* Based on Claims Data 2001-2008, Incurred Losses Limited to $100,000/Occ.

Professional LiabilityCosts by Cause of Loss

* Based on Claims Data 2001-2008, Incurred Losses Limited to $100,000/Occ.

Auto

Existing Safety ProgramMIIA Rewards

Various training for loss prevention in all lines of businessStarted September 2002

EVDT – Firefighter trainingStarted in 2000A “train-the-trainer” program

EVOC – Police TrainingStarted Spring of 2006

Driving Simulator Has Police, Firefighters and DPW training modulesStarted in January of 2005

Auto LiabilityLoss Cost Trend

5.0% Annual Trend

* Loss Cost equals projected expected Ultimate Loss &ALAE / # Vehicles

Auto Physical DamageLoss Cost Trend

2.0% Annual Trend

* Loss Cost equals projected expected Ultimate Loss &ALAE / Insured Value

Auto LiabilityCosts by Department

* Based on Claims Data 2001-2008, Incurred Losses Limited to $100,000/Occ.

General Liability

Existing Safety ProgramMIIA Rewards

Various training for loss prevention in all lines of businessStarted September 2002

Sewer Back-up prevention toolkitStarted January 2006

Sanitary Sewer Overflow protection initiative Started Fall of 2008

Loss Control Grant program Sponsors various loss control initiativesStarted in 2002

General LiabilityLoss Cost Trend

5.0% Annual Trend

General LiabilityClaims Distribution by Department

General LiabilityCosts by Department

* Based on Claims Data 2001-2008, Incurred Losses Limited to $100,000/Occ.

General LiabilityCosts by Cause of Loss

* Based on Claims Data 2001-2008, Incurred Losses Limited to $100,000/Occ.

General Liability - DPWCosts by Cause of Loss

* Based on Claims Data 2001-2008, Incurred Losses Limited to $100,000/Occ.

Property

Existing Safety ProgramMIIA Rewards

Various training for loss prevention in all lines of businessStarted September 2002

Property protection toolkitRoof inspection, freeze prevention, self-inspectionsStarted January 2005

Loss Control Grant program Sponsors various loss control initiativesStarted in 2002

PropertyLoss Cost Trend

2.0% Annual Trend

* Loss Cost equals projected expected Ultimate Loss &ALAE / Insured Value

PropertyCosts by Department

* Based on Claims Data 2001-2008, Incurred Losses Limited to $100,000/Occ.

Property: SchoolsIncurred Loss Distribution by Department

* Incurred Losses Limited to $100,000/Occ.

PropertyCosts by Cause of Loss

* Based on Claims Data 2001-2008, Incurred Losses Limited to $100,000/Occ.

Property - SchoolsCosts by Cause of Loss

* Based on Claims Data 2001-2008, Incurred Losses Limited to $100,000/Occ.

Workers’ Compensation

Existing Safety ProgramMIIA Rewards

Various training for loss prevention in all lines of businessStarted September 2002

“Struck by” prevention program with QBSSummer 2008

On-site back safety training with Bill HooverStarted in 1998

OccHealth ConnectStarted in 2007

* Loss Cost equals projected expected Ultimate Loss &ALAE / Payroll (00s)

Workers’ CompensationComparison of MIIA and Other Municipal Pools Trends

Workers’ CompensationCosts by Department

* Based on Claims Data 2002-2009

Workers’ CompensationCosts by Cause of Loss

* Based on Claims Data 2002-2009

Workers’ Compensation – Schools onlyCosts by Cause of Loss

* Based on Claims Data 2002-2009

Coverage Trend Cost Driver:Department

Cost Driver:Cause

Professional Liability

Favorable Management Public OfficialsDiscrimination

Auto Favorable DPW Accidents

General Liability

Unfavorable DPW Sewer and Water – high severity and frequencyPotholes – high frequency

Property Favorable - Neutral

SchoolsDPW

Water – high severityTheft and Vandalism – high frequency

Workers’ Compensation

Neutral SchoolsDPW

Fall and lift – high severity“Struck by - high frequency

Evaluation of Specific Loss Control Programs

MIIA Rewards ProgramAll Lines of business

* Loss Cost equals projected expected Ultimate Loss &ALAE / Payroll (00s)

Evaluation of MIIA Rewards ProgramAll Programs (Except GL) Combined

Evaluation of MIIA Rewards ProgramAll Programs ex. GL combined

* Excludes GL program and 2008 AY (new projection)

Workers’ CompensationOccHealth Connect Program Evaluation

Workers’ Compensation – OccHealth Participation by Fiscal Year

* Based on Exposure information provided by MIIA

Workers’ Compensation – OccHealth Connect Participation Loss Cost Comparison

* * Based on Claims and Exposure data for FY 2006-07 through 2008-09

Workers’ Compensation – OccHealth Connect Participation Frequency Comparison

* Based on Claims and Exposure data for FY 2006-07 through 2008-09

Workers’ Compensation – OccHealth Connect Participation Severity Comparison

* Based on Claims and Exposure data for FY 2006-07 through 2008-09

Workers’ Compensation – 2008-09 Accident YearOccHealth Connect Loss Cost Comparison

* Based on Claims and Exposure data for FY 2006-07 through 2008-09

Performance of EVOC, EVDT and Simulator training programs

Summary of prior findings (EVOC, EVDT, Simulator training)• Draft study was released in May• We found evidence of effectiveness of EVOC and Simulator

programs, but unable to find it for EVDT.• It could be partially due:

• Lack of credible data • Shorter length of training for EVDT participants• This is a train-the-trainer program, the effectiveness of program is

highly dependent on the secondary training done within the community by the trained individual. Timing of secondary training is difficult to pinpoint.

• Graphs below summarize our findings• Complete copy of the study is provided for reference

purposes

Effectiveness of Safety ProgramsComparison of Average Cost per Vehicle

* Based only on years where participation is known.