On-Demand Webinar

Webinar – The Upside of the Claims Talent Crisis – A Roadmap Forward

Learn more about the silver lining of the emerging talent crisis, and hear from experts on how to align new talent with achieving better results.
By: | October 22, 2015 • 2 min read

Presenters

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Overview

Webinar Sponsor

Webinar Sponsor

Workers’ compensation claims organizations are facing a crisis — an aging talent pool and a mass exodus of Baby Boomers that will impact virtually every facet of claims operations. From core competencies, to technology, to development and retention strategies — the industry must undertake a holistic evaluation of the far-reaching risks and repercussions that the coming crisis poses. And while this crossroads represents a challenge, it also provides the opportunity to draw a roadmap forward, from uncertainty to upside.

Results from the Workers’ Compensation Benchmarking Study, a national multi-year study of more than 700 claims leaders, has quantified the state of claims management today as well as captured executives’ visions for the future through this year’s focus group research.

In 2015, we find claims leaders centering on the talent gap, as well as how to empower a new generation so that they are creators of value through better outcomes management. As revealed by study results, far too few organizations are investing in developing talent, a business risk with grave consequences.

This webinar seeks to redefine the talent crisis as an opportunity to ask this question — how do we align the industry’s emerging claims talent with achieving better results: getting injured employees healthier and productive faster, while lowering costs.

Expert panelists involved in the study will discuss:

  • Attracting and retaining the new generation of talent — Millennials. Ambitious, technology-friendly, and keen on achieving a sense of higher purpose in their work, this new generation has enormous potential — if that potential can be tapped, developed and deployed effectively.
  • Restructuring strategies to aim for success in outcomes management, not just process and compliance improvement, with a much greater emphasis on empowering claims professionals with the data, tools and training needed to achieve mastery in claims management.
  • Making the perfect match: Marrying talent strategies with technology strategies and pairing the tech-driven Millennials with advanced analytics that enhance complex decision-making.
  • Defining new career paths that will allow Millennials and other professionals to fly faster and farther and achieve their ambitions while providing a high degree of job satisfaction.
  • Developing solid mentoring opportunities and senior training to ensure a culture of formalized knowledge transfer programs.
  • Elevating the socially-conscious aspects of the claims profession, understanding the importance of purposeful employment for today’s talent.

Webinar attendees will receive a complimentary copy of the Benchmarking Study’s 2015 Insights Report, which will be released in the coming weeks.

Recording

Download a copy of the slide presentation here.




Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at dreynolds@lrp.com.
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On-Demand Webinar

Webinar – Value-Based Purchasing in WC: An Idea Whose Time is Here

Find out why the time is ripe to explore a value-based purchasing model in workers' comp.
By: | September 4, 2015 • 2 min read

Presenters

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Overview

Webinar Sponsor

Webinar Sponsor

Getting excellent medical results for injured workers at a price that is both predictable and reasonable doesn’t seem like too much to ask. So why is it that the workers’ comp industry and its vendors can’t get this one right?

This webinar’s expert panel is going to show us the way forward. We’ll hear from a California-based medical provider who is contracting with carriers to produce high quality results with spinal injuries, one of workers’ compensation’s toughest and most expensive challenges.

We’ll also talk to the executive director of one of the largest state funds, which has launched a pilot program to use value-based medical provider compensation in managing hundreds of worker knee injuries.

Lastly, we’ll hear from a workers’ comp company that has successfully launched a value-based program for bundled orthopedic surgical procedures.

Furthermore, the expert panel will discuss:

  • The impact of healthcare reform and the creation of accountable care organizations; and the need for workers’ comp to recognize that it must inevitably follow the trend away from the flawed fee-for-service model.
  • How improved modeling is giving payers and providers much better transparency into their risk portfolios of injured workers, and how those analytics can be acted on.
  • That although frequency is down, workers’ comp costs continue to rise. Merely watching this trend and doing nothing is not an option.
  • The challenges of bundled or value-based purchasing, presenting a holistic view of this topic.
  • The recommended steps workers’ comp can take today to implement value-based models, moving the industry towards walking the walk not just talking the talk.

Recording

Download a copy of the slide presentation here.




Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at dreynolds@lrp.com.
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Sponsored: State of Vermont

7 Questions to Answer before Choosing a Captive Insurance Domicile

Ask the right questions and choose a domicile for your immediate and long-term needs.
By: | February 5, 2016 • 7 min read
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Risk managers: Do your due diligence!

It seems as if every state in America, as well as many offshore locations, believes that they can pass captive legislation and declare, “We are open for business!”

In fact, nearly 40 states and dozens of offshore locations have enabling captive insurance legislation to do just that.

With so many choices how do you decide who is experienced enough to support the myriad of fiscal and regulatory requirements needed to ensure the long term success of your captive insurance company?

“There are certainly a lot of choices,” said Mike Meehan, a consultant with Milliman, an actuarial firm based out of Boston, Massachusetts, “but not all domiciles are created equal.”

Among the crowd, there are several long-standing domiciles that offer the legislative, regulatory and infrastructure support that makes captive ownership not only a successful risk management tool but also an efficient entity to manage and operate.

Selecting a domicile depends on many factors, but answering these seven questions will help focus your selection process on the domiciles that best fit your needs.

 

1. Is the domicile stable, proven and committed to the industry for the long term?

ThinkstockPhotos-139679578_700The more economic impact that the captive industry has on the domicile, the more likely it is that captives will receive ongoing regulatory and legislative support. The insurance industry moves very quickly and a domicile needs to be constantly adapting to stay up to date. How long has the domicile been operating and have they been consistent in their activity over the long term?

The number of active captive licenses, amount of gross premium written in a domicile and the tax revenue and fees collected can indicate how important the industry is to the jurisdiction’s bottom line. The strength of the infrastructure and the number of jobs created by the captive industry are also very relevant to a domicile’s commitment.

“It needs to be a win – win situation between the captives and the jurisdiction because if not, the domicile is often not committed for the long term,” said Dan Kusalia, Partner with Crowe Hortwath LLP focused on insurance company tax.

Vermont, for example, has been licensing captives since 1981 and had 589 active captives at the end of 2015, making it the largest domestic domicile and third largest in the world. Its captive insurance companies wrote over $25 billion in gross written premiums. The Vermont State Legislature actively supports an industry that creates significant tax revenue, jobs and tourist activity.

 

2. Are the domicile’s captives made up of your peer group?

The demographics of a domicile’s captive companies also indicate how well-suited the location may be for a business in a particular industry sector. Making sure that the jurisdiction has experience in the type and form of captive you are looking to establish is critical.

“Be among your peer group. Look around and ask, ‘Who else is like me?’” said Meehan. “Does the jurisdiction have experience licensing and regulating the lines of coverage for other businesses in your industry sector?”

 

3. Are the regulators experienced and consistent?

Vermont_SponsoredContentIt takes captive-specific expertise and broad experience to be an effective regulator.

A domicile with a stable and long-term, top-tier regulator is able to create a regulatory environment that is consistent and predictable. Simply put, quality regulation and longevity matter a lot.

“If domicile regulators are inexperienced, turnaround time will be slower with more hurdles. More experience means it is much easier operating your business, especially as your captive grows over time,” said Kusalia.

For example, over the past 35 years, only three leaders have helmed Vermont’s captive regulatory team. Current Deputy Commissioner David Provost is one of the longest tenured chief regulators and is a 25-year veteran in the captive insurance industry. That experienced and consistent leadership enables the domicile to not only attract quality companies, but also to provide expert guidance on the formation process and keep the daily operations running smoothly.

 

4. Are there world-class support services available to help manage your captive?

Vermont_SponsoredContentThe quality of advisors and managers available to assist you will have a large impact on the success of your captive as well as the ease of managing the ongoing operations.

“Most companies don’t have the expertise to operate an insurance company when you form a captive, so you need to help build them a team,” Jeffrey Kenneson, a Senior Vice President with R&Q Quest Management Services Limited.

Vermont boasts arguably the most stable and experienced captive infrastructure in the world. Many of the leading captive management companies have their headquarters for their Global, North America and U.S. operations based in Vermont. Experienced options for captive managers, accountants, auditors, actuaries, bankers, lawyers, and investment professionals are abundant in Vermont.

 

5. Can the domicile both efficiently license and provide on-going support to your captive as it grows to cover new lines of coverage and risks?

Vermont_SponsoredContentLicensing a new captive is just the beginning. Find out how long it takes for the application to get approved and how long it takes for an approval of a plan change of your captive’s operations.

A company’s risks will inevitably change over time. The captive will need to make plan changes which can include adding new lines of business. The speed with which your domicile’s regulatory branch reviews and approves these plan changes can make a critical difference in your captive’s growth and success.

The size of a captive division’s staff plays a big role in its speed and efficiency. Complex feasibility studies and actuarial analyses required for an application can take a lot of expertise and resources. A larger regulatory team will handle those examinations more efficiently. A 35-person staff like Vermont’s, for example, typically licenses a completed application within 30 days and reviews plan changes in a matter of days.

 

6. What are the real costs to establishing and managing your captive?

Vermont_SponsoredContentIt is important to factor in travel costs, the local costs of service providers, operating fees, and examination fees. Some states that do not impose a premium tax make up for it in high exam fees, which captives must be prepared for. Though Vermont does charge a premium tax, its examination fees are considered some of the least expensive options in the marketplace.

It is also important to consider the ease and professionalism of doing business with a domicile in the ongoing operations of your captive insurance company.

“The cost of doing business in a domicile goes far beyond simply the fixed cost required. If you can’t efficiently operate due to slow turn-around time or added obstacles, chances are you have made the wrong choice,” said Kenneson.

 

7. What is the domicile’s reputation?

Vermont_SponsoredContentMake sure to ask around and see what industry experts with experience in multiple domiciles have to say about the jurisdiction. Make sure the domicile isn’t known for only licensing certain types of captives that don’t fit your profile. Will it matter to your board of directors if your local newspaper decides to print a story announcing your new insurance subsidiary licensed in some far away location?

Are companies leaving the jurisdiction in high numbers and if so, why? Is the domicile actively licensing redomestications — when an existing captive moves from one domicile to another? This type of movement can often be a positive indicator to trends in a domicile. If companies of a particular size or sector are consistently moving to one state, it may indicate that the domicile has expertise particularly suited to that sector.

Redomestications made up 11 of the 33 new captives in Vermont in 2015. This trend is a positive one as it speaks to the strength of Vermont. It reinforces why Vermont is known throughout the world as the ‘Gold Standard’ of domiciles.

Asking the right questions and choosing a domicile that meets your needs both today and for the long term is vital to your overall success. As a risk manager you do not want surprises or headaches because you did not ask the right questions. Do the due diligence today so that you can ensure your peace of mind by choosing the right domicile to meet your needs.

For more information about the State of Vermont’s Captive Insurance, visit their website: VermontCaptive.com.

 

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This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with the State of Vermont. The editorial staff of Risk & Insurance had no role in its preparation.




The State of Vermont, known as the “Gold Standard” of captive domiciles, is the leading onshore captive insurance domicile, with over 1,000 licensed captive insurance companies, including 48 of the Fortune 100 and 18 of the companies that make up the Dow 30.
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