measuring the captive’s performance “benchmarking”
TRANSCRIPT
MEASURING THE CAPTIVE’S MEASURING THE CAPTIVE’S PERFORMANCEPERFORMANCE
“BENCHMARKING”“BENCHMARKING”
NERI Captive NERI Captive BenchmarksBenchmarks
Workers’ CompensationWorkers’ Compensation
• Non-$0 WC Frequency Per 200,000 Hours Worked (100 FTE’s)Non-$0 WC Frequency Per 200,000 Hours Worked (100 FTE’s)• OSHA Recordable Incident Rate Per 200,000 Hours WorkedOSHA Recordable Incident Rate Per 200,000 Hours Worked• Days Away From Work Per 200,000 Hours WorkedDays Away From Work Per 200,000 Hours Worked• Incurred Cost Per Hour (1) WorkedIncurred Cost Per Hour (1) Worked
AutoAuto
• Non $0 Auto Frequency Per Ten (10) Insured VehiclesNon $0 Auto Frequency Per Ten (10) Insured Vehicles• Incurred Loss Rate Per (1) Insured VehicleIncurred Loss Rate Per (1) Insured Vehicle
General LiabilityGeneral Liability
• Non $0 GL Frequency Per 200,000 Hours WorkedNon $0 GL Frequency Per 200,000 Hours Worked• Incurred Loss Rate Per Hour (1) WorkedIncurred Loss Rate Per Hour (1) Worked
Calculating Hours WorkedCalculating Hours Worked
Hours Worked by All Employees - Salaried, Hourly, Part Time, & Seasonal Workers
Must be Hours Actually Worked, do not include vacation, sick leave, holidays, or any other non-worked time, even if employees were paid for it.
Standards for the Captive:
• Put Salaried Exempt Managers in at 45 Hours per week (9 hour workday) , including working owner(s), minus vacation, sick, and holiday hours off from work
• Put Hourly Employees in for all regular and overtime hours worked
Benchmark #1 Benchmark #1 Non $0 WC Frequency Non $0 WC Frequency
The number of The number of workers’ workers’ compensation compensation claims valued at claims valued at $1.00 or higher for $1.00 or higher for every 200,000 every 200,000 hours worked or hours worked or 100 Full Time 100 Full Time Employees (FTE’s)Employees (FTE’s)
Benchmark #2Benchmark #2OSHA Recordable Incident Rate OSHA Recordable Incident Rate
The number of The number of OSHA recordable OSHA recordable incidents for incidents for every 200,000 every 200,000 hours worked or hours worked or 100 Full Time 100 Full Time Employees Employees (FTE’s)(FTE’s)
Benchmark #3 Benchmark #3 Days Away From Work Rate Days Away From Work Rate
The number of The number of days lost from days lost from work for every work for every 200,000 hours 200,000 hours worked or 100 worked or 100 Full Time Full Time Employees Employees (FTE’s). (FTE’s).
Benchmark #4 Benchmark #4 Incurred Cost Per Worker Hour Incurred Cost Per Worker Hour
The incurred The incurred dollars of dollars of workers’ workers’ compensation compensation claims per 1 claims per 1 hour workedhour worked
Benchmark #5Benchmark #5
Non $0 Auto Frequency RateNon $0 Auto Frequency Rate
The number of The number of auto claims auto claims valued at $1.00 valued at $1.00 or higher for or higher for every ten (10) every ten (10) vehicles insuredvehicles insured
Benchmark #6 Benchmark #6
Auto Loss RateAuto Loss Rate
The incurred The incurred cost of auto cost of auto losses per losses per insured vehicleinsured vehicle
Benchmark #7 Benchmark #7 Non $0 GL Frequency Non $0 GL Frequency
The number of The number of general liability general liability claims valued claims valued at $1.00 or at $1.00 or higher per higher per 200,000 hours 200,000 hours workedworked
Benchmark #8 Benchmark #8 GL Loss Rate GL Loss Rate
The incurred The incurred cost of cost of general general liability claims liability claims per hour (1) per hour (1) worked worked
BENCHMARKING RESULTS TO NERI MEMBERS
Non $0 Claim Frequency per 200,000 Hours Worked Incurred Cost Per Hour Worked
$0.10
$0.22
$0.40
9.1
8
5.3
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
NERI Member Captive Performance Program Goal
0
1
2
3
4
5
6
7
8
9
10
Incurred Cost Per Hour Non-$0 Claim Frequency
Non $0 Claim Frequency per 200,000 Hours Worked Incurred Cost Per Hour Worked
$0.10
$0.22
$0.40
9.1
8
5.3
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
NERI Member Captive Performance Program Goal
0
1
2
3
4
5
6
7
8
9
10
Incurred Cost Per Hour Non-$0 Claim Frequency
The Graphs Presented on the Following Pages are for Training Purposes and are Not Based on Actual Captive Numbers
Workers’ Comp Frequency & Severity Workers’ Comp Frequency & Severity RatesRates
Non $0 Claim Frequency per 200,000 Hours Worked Incurred Cost Per Hour Worked
$0.10
$0.22
$0.40
9.1
8
5.3
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
NERI Member Captive Performance Program Goal
0
1
2
3
4
5
6
7
8
9
10
Incurred Cost Per Hour Non-$0 Claim Frequency
Non $0 Claim Frequency per 200,000 Hours Worked Incurred Cost Per Hour Worked
$0.10
$0.22
$0.40
9.1
8
5.3
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
NERI Member Captive Performance Program Goal
0
1
2
3
4
5
6
7
8
9
10
Incurred Cost Per Hour Non-$0 Claim Frequency
Workers’ Comp Frequency & Severity Workers’ Comp Frequency & Severity RatesRates
Days Away From Work Per 200,000 Hours Worked OSHA Recordables Per 200,000 Hours Worked
13.00
32.50
50.00
4.6
6.7
8.2
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
NERI Member Captive Performance Program Goal
0
1
2
3
4
5
6
7
8
9
10
Days Away From Work Rate OSHA Recordable Incident Rate
Days Away From Work Per 200,000 Hours Worked OSHA Recordables Per 200,000 Hours Worked
13.00
32.50
50.00
4.6
6.7
8.2
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
NERI Member Captive Performance Program Goal
0
1
2
3
4
5
6
7
8
9
10
Days Away From Work Rate OSHA Recordable Incident Rate
Auto Frequency & SeverityAuto Frequency & Severity
Non $0 Auto Claim Frequency Per 10 Vehicles Insured Auto Incurred Loss Rate Per Insured Vehicle
$480.00
$232.00
$350.000.63
0.75
0.92
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
NERI Member Captive Performance Program Goal
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Auto Incurred Loss Rate Non-$0 Auto Frequency
Non $0 Auto Claim Frequency Per 10 Vehicles Insured Auto Incurred Loss Rate Per Insured Vehicle
$480.00
$232.00
$350.000.63
0.75
0.92
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
NERI Member Captive Performance Program Goal
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Auto Incurred Loss Rate Non-$0 Auto Frequency
General Liability Frequency & SeverityGeneral Liability Frequency & Severity
Non $0 GL Claim Frquency Per 200,000 Hours Worked GL Loss Rate Per Hour (1) Worked
$0.43
$0.19 $0.20
0.8
1.5
1.32
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
NERI Member Captive Performance Program Goal
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2
GL Loss Rate Non-$0 GL Frequency
Non $0 GL Claim Frquency Per 200,000 Hours Worked GL Loss Rate Per Hour (1) Worked
$0.43
$0.19 $0.20
0.8
1.5
1.32
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
NERI Member Captive Performance Program Goal
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2
GL Loss Rate Non-$0 GL Frequency
Submitting Your Benchmarking Information On-Line
Go to WWW.HETTRICKCYR.COM/NERI.HTM
USER NAME:
PASSWORD:
“The following form is required to be submitted by the 10th of each month to Hettrick Cyr & Associates, in order to provide benchmarking information to NERI Participants. Benchmarking allows you to see if your company and the program are meeting safety and loss control goals established by the NERI Captive Program Loss Control Committee. Each benchmark will consist of the individual member’s experience compared to the overall program experience and compared to program benchmark goals. Each member will be mailed monthly their own results against the program results and goals. Please contact Bill Hettrick, Hettrick Cyr & Associates, at (888) 805-0300 extension 14 with any questions. Thank you for your assistance and commitment to safety and loss control.”
Submitting Your Benchmarking Information On-Line
Company Name: __________________________
Submission Completed By: ______________________
*E-mail Address: (*Email Required) _____________________
Month Data Completed For: ____________
Total Hours Worked For Month: _________
Number of Vehicles Insured During Month: _______
Number of OSHA Recordables from May 1, 2007 to the end of
the data Month: ______
Number of days away from work from May 1, 2007 to the end of the data Month: ________
SUBMIT TO HC & A