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Risk Management
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"Safety Strategies for Success"
Introduction and Overview
The Innovative Captive Strategies Risk Management Services (ICS RMS) platform is based on a few simple but very important principles and goals. Best in class safety and loss control practices are essential to the success of any captive group and the performance of ICS captives is a testament to the commitment that all members have made to improving the safety of their workplaces, operations, products and employees.
ICS helps captive group members operate safely by focusing on the following core competencies, each of which will be discussed in more detail immediately below:
- Claim and loss data collection, review and analysis
- Communication and information sharing between members and groups
- Development of safety and loss control standards and guidelines
Claim Data Review and Analysis
Each member’s claim data is tracked by ICS and shared with members frequently. The Loss Run that members receive each month identifies each claim individually and shows the incurred, paid and reserve amounts associated with that claim. Members also receive a Loss History Analysis compiled by ICS on a quarterly basis which compares claims incurred amounts to the member’s premium and loss funding. This data is included in the books that are provided to the members at bi-annual Board of Directors meetings and provides a snapshot of how that member is performing from a loss ratio standpoint.
In addition to sharing claims data, ICS facilitates Risk Control Workshops that are held twice per year for each group. These meetings feature presentations by members, outside service providers and consultants, and the member loss histories are presented and discussed. See below for additional discussion of the Risk Control Workshop program.
Large losses (usually defined as claims in which the total incurred amount exceeds $75,000) are the focus of additional attention and analysis because of their potential financial impact and because of the lessons that can be learned from high exposure claims. Members are required to complete a Large Loss Questionnaire which is shared with the rest of the group. (Copy of Large Loss Report Form available on request) In addition, most ICS captives include a group discussion of large losses at the Risk Control Committee session that takes place during the Board of Directors meeting. These discussions again focus on the lessons to be learned and the identification of ways to avoid similar claims from occurring in the future.
Each captive group’s cumulative claims experience is reviewed and analyzed twice per year and is benchmarked against the group’s past performance and against other ICS captive groups to identify potentially dangerous trends. This data is also shared with the group at the Risk Control Committee session of the captive Board of Directors meeting. The analysis includes data reflecting the cause of loss and type of injuries most commonly occurring and is broken down by type of coverage. In addition, the analysis focuses on claim reporting practices to make sure all claims are being reported to the carrier or TPA in a timely fashion.
*Copies of Risk Control Committee meeting agendas and copies of a trend analysis package can be provided on request.
Communication and Information Sharing Between Members
The term “Best Practices” has been used in the business world for many years and means different things to different people. At ICS RMS the term means identifying the things that each member does very well in the areas of safety and loss control and creating an environment in which all the other members of the group have the information and resources to adopt those same processes and procedures.
ICS RMS works with independent and agency partner loss control professionals to regularly review the operations of captive group members to identify the exposures existing in those operations and the controls being brought to bear on those exposures. As a result of this work, a detailed analysis of the members risk profile is developed which can identify opportunities for improvement. Just as importantly, it can identify what that member does well in the areas of safety and loss control that should be shared with the rest of the captive group and with other captives.
As an example, Member A may have developed a very detailed and successful potential employee interview, evaluation and selection process. That member would be invited to speak to the group and share the processes and professional partners they have used to create and administer their program. Likewise, Member B may have developed a GPS tracking system for their vehicles that allows them to track speed, time in service, and hard braking/quick acceleration incidents (near misses). The member is given the opportunity to explain their program in detail including costs and benefits.
The forum for this idea sharing is the Risk Control Workshop which is facilitated by ICS RMS. Each captive group holds two meetings per year, usually at a member facility but also at agency and carrier partner locations. These meetings are a great opportunity for the safety, human resources and claims person from the group members to get together to compare notes, discuss lessons learned and gain knowledge from one another.
*Sample Risk Control Workshop agendas can be provided on request.
Overall, the information sharing piece of the ICS RMS platform is designed to billboard member safety practices that can then by used for the benefit of all members. Through the success of individual members, the captive succeeds as well and the “all for one” nature of the captive model encourages the free and open sharing of ideas and programs.
Individual group best practices and safety success stories are leveraged across all ICS captives through the Risk Management Advisory Group. This group is made up of the agency-based and independent loss control professionals that work with all ICS captives on a day to day basis. The RMAG meets once per year to review new safety products and initiatives and to brainstorm how the safety and loss control performance of all captives can be improved. This body also serves as a sounding board for ICS RMS and lets us know what current initiatives are working in the field and what new initiatives need to be introduced and rolled out.
*Sample Risk Management Advisory Group agendas can be provided on request.
Safety and Loss Control Standards and Guidelines
As a result of the member presentations and discussion that takes place at the Risk Control Workshops, a number of ICS captive groups have begun to develop Loss Control Guidelines that are used for current and prospective member’s to identify key components of their loss control and safety programs. This is not a “one size fits all” approach and each individual group is encouraged to customize their guidelines to make them effective in their specific industry or geographic area. The creation and adoption of guidelines is voluntary for each captive group, but they have proven to provide a good “road map” for companies wishing to formalize their loss control program and they are being adopted more and more frequently.
*Sample Loss Control Guidelines covering auto, general liability, work comp and other areas can be provided on request.
In addition to focusing on the technical aspects of safety and loss control of their members, ICS captive groups have also created measurements that make each member accountable for their individual performance, again to contribute to the overall success of the captive group. As an example, all ICS captive groups have a stated loss ratio goal in place and each member’s performance against that goal is measured and announced several times per year including Board of Directors meetings and the Risk Control Workshops. Those members meeting and exceeding the goal are recognized and rewarded. For those members who do not meet the goal, a support and improvement system is in place in the form of a loss ratio improvement program. An actual program from an ICS captive group follows;
ICS Captive Member Loss Ratio Improvement Initiative
Any member whose loss ratio exceeds the captive loss ratio goal for two of the most recent three policy years, including the first two quarters of the current policy year has agreed to undertake a Loss Ratio Improvement Initiative consisting of the following elements:
- A Loss Control Consultant will visit the member’s facility and work with the member to update the risk assessment/exposure analysis form and the member’s risk improvement plan.
- Once the plan is updated and in place, the member will communicate with the Loss Control Consultant every 90 days to document progress relative to the plan.
- The Loss Control Consultant will advise ICS Risk Management Services whether a follow-up visit at the member’s expense is required to fully implement the plan.
- ICS Risk Management Services will include documentation of the plan and the member's progress in Board of Director meeting and Risk Control Workshop Books.
- The member will appear in person at the first Board Meeting or Risk Control Workshop following the creation of the plan to document their progress towards achieving the plan goals and the member will continue to appear at subsequent Board meetings/Risk Control Workshops until the Committee determines that sufficient progress has been achieved.
- If a member representative is not able to attend the meeting, the member company needs to call ICS Risk Management Services and provide ICS with sufficient information to make the report in their absence.
- If the member does not comply with this requirement, the RCC Chairman will report the deficiency to the Executive Committee for their review and possible action.
Taken together, the loss control standards and guidelines, the information and expertise the members gain from one another and the loss ratio improvement program can ensure the continued success of companies with strong safety records and can improve the performance of companies that need it.
Additional Information Available
ICS RMS has adopted and developed a number of forms that can be used to help members and agency partners identify the exposures existing in a member or potential member’s operations. Copies of the forms are available by contacting a representative of ICS Risk Management Services. They include the following:
- Risk Assessment and Exposure Analysis – General Industry
- Risk Assessment and Exposure Analysis – Contractor Risks
- Risk Improvement Plan and Plan Update
- Welding Exposure Survey
- Silica Exposure Survey
- Residential Contracting Exposure Survey
- EFIS Exposure Survey
- Blasting Exposure Survey
Loss control guidelines and standards covering a variety or topics are also available from ICS RMS. They include:
- Auto Standards
- General Liability Standards
- Work Comp Standards
- Risk Control Committee Mission Statement
- Loss Control Allocation Usage Policy
- Large Loss Notification, Investigation and Reporting Standards
- Scorecard and Performance Recognition and Award Procedures
- Loss Ratio Performance Improvement Initiatives
ICS Contacts
John Anderson, ARM
Senior Risk Management Specialist
janderson@yourcaptive.com
(515) 223-7051
Curtis Williams
Risk Management Specialist
cwilliams@yourcaptive.com
(515) 974-5920
Stacy Rosonke
Risk Management Specialist
srosonke@yourcaptive.com
(515) 223-6947
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