R&R Insurance Blog

Don't be surprised if your renewal comes through with a significantly reduced dividend or none at all. The insurance market is changing. The soft market and other external financial factors warranted workers compensation carriers to offer large flat dividends to their commercial insureds. Those days are numbered. (See CFO.com September 18, 2012: Insurance Rate Outlook: From Flat to Soaring) 

• If your flat dividend is significantly reduced, how do you fight to keep it?
• If you're offered either a flat or a variable dividend, how do you know which one to choose?
• Perhaps your only choice at renewal is a variable, how do you ensure that you receive the most dividend that you deserve? The simple answer to all of these questions is that you earn it... Here's how:

Fight to keep the flat dividend that you have
If your loss ratio is perfect and if you have the systems and programs in place to keep your losses at a very minimum, then your broker should be presenting you in that light. Prove that your business is worthy of the flat dividend by showing your process controls. Your loss ratio will be a key driver of this.

Flat or Variable Dividend - which one is right for your business?
This depends on your loss ratio. Obviously, if you have a big flat, then try to keep it. If you are offered a low flat or a higher variable dividend, it's a gamble. Do you have the processes in place to ensure a low loss ratio? Do you have a return to work program? A culture of safety? Accident investigation processes that work in your favor? How do you manage your experience MOD? If you're doing these things correctly, then perhaps the variable is the right choice. The correct processes and programs in place will enable you to earn as much of the variable that's offered.

If your only choice is a variable dividend, how do you earn the maximum? The same above applies. Earn it. Earn all of it. It's possible, with the right resources, the right processes, and a zero-accident culture, that your business can earn the workers compensation dividend that it deserves.

Wisconsin businesses, if you don't have these processes in place, if you don't have local in-house resources to help make this happen, or if your broker isn't looking out for your best interest when it comes to fighting for your dividend, then you need to contact a knowledgebroker.

Related information:

3 Ways to Improve Your Chances of Earning a Workers Compensation Dividend
Advantages of a Structured Return to Work Program
3 Common Mistakes of Accident Investigation
Making Time Work For You in a Workers Compensation Claim

Return to work quick videos

A lot of business owners concentrate on the dividend portion of a workers compensation insurance policy. Rightly so, it’s a significant refund and can be critical to the bottom line of any business.  What business owners and CFO’s don’t often realize, though is that if you manage your experience MOD first, the dividends will follow.

If you currently have a flat dividend, you'll need to protect that by proving that your business is worthy of it again upon renewal. If you have a variable dividend, since the variable is loss-sensitive, you'll need to have as minimal a loss ratio as possible to get the maximum return.

Either way, flat or variable, you need to be in control of your workers compensation program to get the maximum return. Here are 3 ways to improve your chances of earning (or keeping) a workers compensation dividend.

1. Control your claim losses, and more specifically your lost-time claim losses.
2. Prevent accidents in the workplace.
3. Help your injured workers return to the job as soon as medically reasonable with the implementation of a strong return-to-work program.

Concentrate on managing your experience MOD, and the dividends will follow! Need help with managing your experience MOD? Contact a knowledgebroker today.

Attend our Accident Investigation Seminar, held in Pewaukee, Wisconsin

Related information:

How to keep your flat work comp dividend
Advantages of a Structured Return to Work Program
3 Common Mistakes of Accident Investigation
Making Time Work For You in a Workers Compensation Claim

See CFO.com September 18, 2012: Insurance Rate Outlook: From Flat to Soaring

The State of Wisconsin estimates it could save $12 billion dollars if residents "slim down".

With National Health Expenditures continuing to rise, employers profits are being consumed by healthcare costs.  Some estimates are as high as 58% after taxes!  Today, nearly half of all workers compensation claims include loss time or disability rating.

In particular, obesity is affecting work comp claims in a big way.  A 2007 Duke University Medical Center Study compared obese employees to normal weight employees:

• 50% more workers' compensation claims
• 13x more lost work days
• 7x higher medical costs
• 11x indemnity claim costs

For information on how to reduce your workers compensation costs, improve the health of your employees and increase their productivity, contact a knowledgebroker today!

Absolutely!  We will say that with CAUTION.  The State of Wisconsin has a rate change date of 10/1/13.  Our in-house Smart Comp program projects and verifies mods on a routine basis.  CAUTION:  With this 10/1/13 rate change, comes changes in the "D" ratio.  The "D" ratio is a factor used to determine the amount of expected losses for each classification that are Expected Primary Losses.  Without the rate table adjustments it is very difficult to accurately predict the overall increase or decrease of proposed split point changes on a specific employer's experience mod.

Takeaways:

•  The impact will vary by how many claims fall in the increased split point range (i.e., $5,000-$15,000)
•  If you have a credit mod (under 1.00) with few or no losses greater than $5,000 you should more than likely see a decrease
•  If you have a debit mod (over 1.00) with several claims that fall in the increased split point range you should expect to see an increase

We typically see the rate change from the State of Wisconsin come through mid-July of each year to be effective 10/1/13.  If you have a 1/1/2013 policy effective date and strictly do business in the State of Wisconsin, expect to see this split point change on 1/1/2014.  We will be actively projecting experience modifications that incorporate this change as soon as we receive the new rates!

People find it hard to envision themselves needing hands-on assistance with basic living activities like bathing, getting dressed, and eating so they avoid thinking about it altogether.  Statistics show that over 70% of people who reach age 65 will require long term care services at some point. The unknown factor is how long you will need to receive the care services. More long term care facts.

Waiting to address your long term care needs until the point at which you actually need care could have severe financial ramifications.

Consider the costs:

• 1 year of care today: $75,000
• 1 year of care in 30 years: $250,000
• 3 years of care in 30 years: $750,000

Perhaps the greatest benefit of Long Term Care Insurance is allowing your loved ones to care about you, instead of having to care for you. No one wants to be a burden to their family...hear more from Jane Shevey, Long Term care Specialist at R&R Insurance.

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Wisconsin residents, if you would like more information on Long Term Care Insurance (LTC), please contact us.

Established by the Wisconsin Department of Public Instruction to bring attention to the harmful affects of bullying in the school setting. Bullying may negatively impact a student's connection with school, their engagement with the curriculum, and their overall ability to learn. Bullying prevention is critical to building a school environment conducive to learning and where students feel safe at all times.

One of the provisions of Act 309, the fourth Wednesday of September has been declared "Annual Bullying Awareness Day" in Wisconsin. Schools should take advantage of this opportunity to emphasize a strong stance on the problem and to high light policies and procedures in place to address it. Having a single day dedicated to the problem seems reasonable and WSSCA encourages administrators to find creative ways to show their individual support of the anti-bullying efforts in place. We may not stamp out bullying in our lifetimes, but we ought to try like all heck.  Some tips to help "bully-proof" your child.

The concept of bullying in school is not a new - it has been in the news for quite some time.  In 2010, Oconomowoc students learned how to combat bullying by performing interactive drama classes.