Rise of real-time analytics: Data sources are growing at an unprecedented velocity, and the ability to loop insights immediately back into the decision process is supporting automating responsive actions like never before. By 2017, more than 50 percent of analytics implementations will make use of event streams generated from instrumented machines, applications and/or individuals.
The NAPEO Risk Management Workshop was a huge success! There was unprecedented attendance and the progress around the PEO industry has never been more exciting. Takeaways from each of the seminars are available for download below, and follow PEO Compass as we continue to provide updates from the workshop.
We would like to thank all of the workshop sponsors that made this event so successful.
Underwriting capabilities are enhanced with the introduction of advanced technology systems, agile business development applications and the internet, changing the way data is generated, accessed and used. Sophisticated data analysis provides strategic insight, increases the time available to underwriters for the value-adding business of risk assessment and improves confidence in data by providing a measurable commercial value. As for data capabilities, it is all about making data talk. Data can be cut vertically, horizontally and provide a multitude of pictures that provide in-depth management information that offers tremendous business insight. It can be cut by geography, product, regulatory entity and more.
The NCCI has become on of the greatest advocates for PEO performance and regulation. Mona Carter, Senior Division Executive at NCCI, spoke to the progress of the industry since the National Council last published its “Don’t Just Speculate, Investigate!” report. According to the NCCI, the method for moving forward is to work TOGETHER. The following initiatives were discussed during the presentation:
- INDUSTRY TASK FORCE SEEKING TO BRING CLARITY
- USE OF ENDORSEMENTS
- COMMON DEFINITIONS
- DATA COLLECTION FOR COMPLIANCE AND RATE MAKING
Happening today! PEO Compass will be covering what has become the largest gathering of PEO risk management professionals, carriers, brokers, and agents. Nowhere else will you find the PEO industry’s top risk managers, key insurance executives, regulatory experts, and policy makers gathered for such an in depth look at PEOs and workers’ compensation. Attendees will hear from leaders in the industry, such as Risk Transfer, the NCCI, and many more. Take home ideas that you can employ back in your office immediately to improve your risk management practices. See the breakout sessions and their times below.
Tuesday, February 25, 2014:
- Keynote Session: What are Best Practices and How to Benchmark Them in Your Organization
- Best Practices for Building a PEO Submission for Prospective Carriers
- Insurance Carrier Panel: A Candid Question & Answer Session with the EPLI and General Liability Carriers Serving the PEO Industry
- Insurance Carrier Panel: A Candid Question & Answer Session with the Insurance Carriers Serving the PEO Industry
Wednesday, February 26, 2014
- Keynote Session: NCCI & PEOs
- Achieve Higher Standards in Cyber Security: PEO, IT and Insurance Experts Discuss Best Practices to Avoid a Potential Breach
- Networking Lunch & NAPEO Legal & Legislative Update
- Breakout Sessions:
- Workers’ Compensation Claims Management: Best Practices
- The Certification Institute: What is It and Why Should My PEO be Certified?
- Breakout Sessions:
Delaware Insurance Commissioner Karen Weldin Stewart announced she has approved the re-submission of workers’ compensation rate filing regarding the residual market rate and the voluntary market loss cost.
The commissioner and Ratepayer Advocate Fred Townsend, along with their actuaries, concurred that the increases of 11.4 percent in residual market rates and 14 percent in voluntary market loss costs met the requirements in Delaware law that rates must not be inadequate, excessive, or unfairly discriminatory. DCRB’s earlier filing had called for a larger increase.
The effective date of the increase is retroactive to Dec. 1, 2013, for new and renewal business.
Maine announced Thursday that the (NCCI) 2014 loss cost for Maine, filed earlier this month, which proposed a premium decrease of 7.7 percent where approved. The new NCCI rates go into effect for new and renewing policies as of April 1, 2014. Maine currently has a competitive market for workers’ comp insurance and each insurer sets its own rate level. Insurers may modify the NCCI loss costs and must select their own expense and profit factor in setting rates.
Risk Transfer is proud to announce that we will be publishing an article on the state of the PEO industry in the upcoming PEO Insider March edition.
We have always believed in the PEO model and are so proud that the most prevalent actuarial bureau in the country – the National Council of Compensation Insurance (“NCCI”) – has been able to provide empirical evidence on how the PEO model compares to the traditional deployment of workers’ compensation. In presenting his study this last August on the PEO industry titled “Before You Speculate, Investigate”, Harry Shuford, Chief Economist of the NCCI, Mona Carter, National Policy Development Executive, and the NCCI team provided many poignant facts in the first three ever studies to discuss the empirical evidence. By no means one way or the other… just the facts –
Harry and Mona stole the show at the beginning with some of their opening one-liners:
- Harry Shuford opined, “Saving the reputation of PEO is like getting chewing gum out of one’s hair”.
- Mona Carter spoke to the “mythical image of the PEO 20 years ago”
The overall theme was that every industry has its share of bad actors and that PEOs have made considerable progress in being one respected part of the workers’ compensation delivery system.
What is most appreciated is their independence to the process regardless of the result. The NCCI keeps score with the greatest amount of credibility available to anyone. They have worked hard to better understand the PEO model, written data scripts to understand PEO results and are still working very diligently to make the carriers that underwrite our industry more efficient in supporting the PEO model.
Mr. Shuford’s influence reflects well on the institution’s commitment to be accurate and to evolve as times change.
- PEOs are more compliant with data to actuarial bureaus
- PEOs do not “mod wash”
- The lost-time severity for PEOs was markedly lower.
- PEOs outperformed the traditional market from a loss ratio standpoint for 4 of the last 6 years, tied for one and only lost in the most current year (which the writer feel is only due the faster payout pattern within the PEO model then traditional industry)
- PEOs actually over-report claims in versus the historical stigma of not presenting claims to their insurance companies
Look for NAPEO’s PEO Insider March edition and check out the Risk Transfer featured article to learn more about PEO progress in 2014.