Florida comp rate cut 13.8% in commissioner’s final order

It’s official…effective January 1st, workers’ compensation rates in Florida will decrease by -13.8%.  We will share the new rates as soon as we get our hands on them.

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Florida Insurance Commissioner David Altmaier has issued a final order for a 13.8% workers compensation rate decrease for 2019.

This applies to both new and renewing workers comp policies effective in the state as of Jan. 1, according to a statement issued on Friday by the Office of Insurance Regulation.

The final rate reduction is slightly larger than the 13.4% decline submitted by the National Council on Compensation Insurance in August.

Workers compensation rates in the state have been significantly impacted in recent years by two major court decisions: in Marvin Castellanos v. Next Door Co. et al., the Florida Supreme Court ruled 5-2 that Florida’s mandatory attorney fee schedule was unconstitutional while in Bradley Westphal v. City of St. Petersburg, the Florida Supreme Court ruled that the state’s 104-week cap on temporary total disability benefits was unconstitutional.

Tennessee Insurance Commissioner Approve 19% Comp Rate Cut

It’s official…comp rates in Tennessee will be dropping -19% as of 3/1/19.  See more below from Business Insurance News.

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Tennessee Department of Commerce and Insurance Commissioner Julie Mix McPeak has approved a 19% reduction in workers compensation rates in the state.

The 19% reduction was recommended by the National Council on Compensation Insurance in August and the commissioner approved the decrease on Oct. 31, according to a statement issued by the department on Monday. The reduction will become effective on March 1.

Previous reductions of 12.6% and 12.8% were approved for 2018 and 2017, respectively, according to the statement.

Rate reductions have been attributed to reforms of the state’s workers comp system and fewer significant workplace injuries, according to the statement.

Workers’ Compensation Insurance 13.8% Rate Decrease for 2019

See below from FAPEO’s Robert Skrob regarding the impending workers’ compensation rate decrease in Florida.

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TALLAHASSEE, Fla. – Florida Insurance Commissioner David Altmaier issued an Order Friday notifying the National Council on Compensation Insurance (NCCI) that its 2019 rate filing proposing a 13.4 percent decrease, if amended by November 7, 2018, will be approved as a slightly larger workers’ compensation rate decrease of 13.8 percent. Approval of a revised rate decrease is contingent on the amended filing being submitted with changes as stipulated within the Order. If approved by OIR, the revised rate decrease would become effective on January 1, 2019, for new and renewal business.

19% Workers’ Compensation Rate Decrease Proposed for Tennessee

NCCI is recommending a sizable rate decrease for Tennessee at -19%.  If approved, the decrease will be effective 3/1/19.  See more information below from Insurance Journal.

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The National Council on Compensation Insurance (NCCI) has filed for a 19.1 percent decrease for workers’ compensation voluntary market loss costs in Tennessee – the largest recommended decrease since reforms to the state’s workers’ compensation system were passed in 2013.

The filing, made towards the end of August, is based on premium and loss experience for policy years 2015 and 2016, according to a filing executive summary released by NCCI. If approved the rates would go into effect March 1, 2019.

NCCI said the proposed decrease is attributed in part to a continued decrease in Tennessee’s lost-time claim frequency. NCCI also noted that both indemnity average cost per case and medical average cost per case have remained “relatively stable” in recent years after adjusting to a common wage level.

The proposed changes in voluntary loss cost level by industry group are as follows:

If approved, the rate decrease would be the eighth consecutive reduction in workers’ compensation rates. Last year, NCCI filed for a rate reduction of 12.6 percent and a 12.8 percent reduction was approved in 2016. Insurance carriers combine NCCI’s loss cost filings with company experience and expenses to develop insurance rates. In 2017, the Tennessee Department of Commerce & Insurance noted that since Tennessee introduced significant changes to its workers’ compensation system in 2014, NCCI filings have totaled loss cost reductions of more than 36 percent.

The workers’ compensation reforms that took effect in 2014 included the creation of a new administrative court system to handle workers’ compensation claims – moving the state’s claims process from a tort system to an administrative one. The reforms also established medical treatment guidelines and provided a clearer standard in determining to what degree an injured worker’s medical condition may have contributed to the cause of an on-the-job injury.

In June, a study by the Workers Compensation Research Institute (WCRI) attributed a drop in the average total cost per workers’ compensation claim of 6 percent in 2015 in part to the state’s workers’ comp system reforms.

“Most of the 6 percent decrease in the average total cost per workers’ compensation claim in Tennessee was from a 24 percent decrease in permanent partial disability (PPD) benefits. Total costs per claim incorporate payments for medical treatments, indemnity benefits, and expenses to manage claims,” said Ramona Tanabe, WCRI’s executive vice president and counsel, said in a statement at the time.

The WCRI study, which compared Tennessee workers’ compensation systems in 17 other states, also noted that worker attorney involvement has decreased in recent years and that time to first indemnity payment within 21 days of injury in Tennessee was similar to the other study states during 2016/2017. The study used claims data with injuries dating back to Oct. 1, 2014, and payments made through March 31, 2017.

Insurer trade group the Property Casualty Insurers Association also noted the impact the 2013 reforms have made in the state.

“Tennessee has had excellent financial results in the workers compensation market following the workers compensation reforms of 2013,” said Jeffrey L. Brewer, vice president of PCI Public Affairs. “Claims frequency continues to decline as a result of automation and improved employer safety programs. Loss costs appear to be stable.”

A spokesperson for TDCI said in an e-mail to Insurance Journal that it would be premature for the department to comment on the potential for a rate reduction given that the figures are preliminary and still need to be examined by actuaries. Commissioner Julie Mix McPeak has 90 days from the filing date to make a decision on the filing.

Gradient A.I., spun out of Milliman, looks to midsize insurers for growth

We are very excited for our friends at Gradient A.I. and look forward to introducing their best-in-class predictive analytics model to our family, friends, clients and prospects. Congratulations Stan and team!

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Stan Smith, founder and CEO of gradient A.I., has acquired the company from its former parent, the insurance advisory firm Milliman.

Gradient provides predictive analytics and data warehousing services to insurance companies, powering its underwriting and claims-management models with AI. There’s a staff of about 20 who are coming with Smith in the new era of the company. Terms of the deal were not disclosed

Smith joined Milliman in 2013 to start gradient after launching a series of startups including a predictive modeling service for supply-chain management. Milliman decided to spin the unit out because it felt it didn’t dovetail with its consulting services.

“There wasn’t alignment, so I purchased what I didn’t already own from the business,” Smith explains.

Gradient’s current clients are risk pools, self-insured companies and small mutuals. These include the Connecticut Interlocal Risk Management Agency (CIRMA), The Builders Group and A.I.M. Mutual.

“It’s a tough space to start but if you prove yourself you can move up,” Smith says. “We’re fortunate that a lot of the clients we’ve worked with are happy to share knowledge and experience.”

The database that gradient works off of includes data from its clients, Milliman and other third-party sources. Smith says the company anonymizes information as much as it can, and segregates as needed depending on usage agreements. Now, the goal is to operationalize it for bigger clients.

“We’re seeing a pull from the midmarket — bigger than we initially targeted. These are carriers up to a billion dollars in premium,” Smith says. “Even companies with hundreds of millions in premium have a small number of anomalous outcomes. Having a big data set, because we started in Milliman, will help.”

Published by Digital Insurance

Author: Nathan Golia

Senator Nelson Fundraiser Held On Campus at Libertate Insurance

One of the best things about working out of a non-traditional office is the opportunity to house really cool events.  The recent NAPEO fundraiser for Senator Nelson did not disappoint!

On Friday, April 20th, Libertate was fortunate enough to participate in this fabulous event that raised money for Senator Nelson who has been a long-time supporter of PEO initiatives such as the Small Business Efficiency Act (SBEA).  Additionally, he helped educate his fellow legislators on how to address PEOs and the Affordable Care Act (ACA).  Thanks to Senator Nelson, NAPEO and to all of those that participated.

GEX Management And LL Roberts Group To Open Joint Sales & Service Center In Northwest Arkansas

Nothing makes me prouder than to see two of Libertate’s clients partnering together to grow the PEO model in my home state of Arkansas.  Congrats, best of luck and Whoo Pig Sooie!!!

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DALLASMay 2, 2018 /PRNewswire/ — GEX Management, Inc. (OTCQB: GXXM), announced that it has reached agreement in principle with LL Roberts Group, a Dallas, Texas-based Professional Employer Organization (PEO), to jointly open and operate a PEO Sales & Service Center in Northwest Arkansas. The center will offer and service a variety of employee administration needs for small and mid-sized businesses. These services will include professional payroll and employment tax administration, workers’ compensation coverage without deposits or year-end audits, a 401(k) plan with no client maintenance fees, group medical, dental, and vision plans, innovative benefits such as Teladoc, as well as Human Resources and Risk Management consultative support.

 GEX Management’s Founder and CEO, Mr. Carl Dorvil, stated, “PEO services are a tremendous resource that can only have a positive impact on the robust economy and rapid growth of Northwest Arkansas.” LL Roberts Group President and CEO, Mr. LJ Roberts, added “We are proud to join GEX Management in introducing high-quality employee administration solutions to businesses across Northwest Arkansas. 

Launch of this Northwest Arkansas PEO Sales & Service Center is slated for May or early June of 2018.

About GEX Management
GEX Management, Inc. is a licensed Professional Employer Organization (PEO) and a Professional Services Company providing comprehensive back office services to clients including HR, Payroll, Risk & Compliance, and Executive Consulting, and provides progressive and complete solutions for employee management and operational needs. http: www.gexmanagement.com

Information on Forward Looking Statements
The statements contained herein that are not historical facts are forward-looking statements within the meaning of the federal securities laws (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). You can identify such forward-looking statements by the words “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “likely,” “possibly,” “probably,” “goal,” “opportunity,” “objective,” “target,” “assume,” “outlook,” “guidance,” “predicts,” “appears,” “indicator” and similar expressions. Forward-looking statements involve a number of risks and uncertainties. In the normal course of business, GEX Management, Inc., in an effort to help keep our stockholders and the public informed about our operations, may from time to time issue such forward-looking statements, either orally or in writing. Generally, these statements relate to business plans or strategies, projected or anticipated benefits or other consequences of such plans or strategies, or projections involving anticipated revenues, earnings, profits, pricing, operating expenses or other aspects of operating results. We base the forward-looking statements on our expectations, estimates, and projections at the time such statements are made. These statements are not guarantees of future performance and involve risks and uncertainties that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. The actual results of the future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements.

Milliman’s gradient A.I. platform brings first A.I. predictive analytics solution to the professional employer organization (PEO) market

Huge news announced today by Milliman in the world of artificial intelligence (see below press release).  Milliman’s gradient A.I. is the first solution of its kind to be applied to PEO underwriting and claims management.  We at Libertate have been working with Milliman on this project for the past 18 months as we always felt there weren’t enough tools in the marketplace to help our clients price and evaluate risk.  Let’s discuss in more detail this week in Houston at NAPEO’s Risk Management conference!  Call me for more details at 305.495.5173.

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SEATTLE – MARCH 19, 2018 – Milliman, Inc., a leading global provider of actuarial, risk management, and technology solutions, today announced that gradient A.I., a Milliman predictive analytics platform, now offers a professional employer organization (PEO)-specific solution for managing workers’ compensation risk. gradient A.I. is an advanced analytics and A.I. platform that uncovers hidden patterns in big data to deliver a daily decision support system (DSS) for insurers, self-insurers, and PEOs. It’s the first solution of its kind to be applied to PEO underwriting and claims management.

“Obtaining workers’ compensation insurance capacity has been historically difficult because of the lack of credible data to understand a PEO’s expected loss outcomes. Additionally, there were no formal pricing tools specific to the PEO community for use with any level of credibility – until gradient A.I. Pricing within a loss sensitive environment can now be done with the science of Milliman combined with the instinct and intuition of the PEO,” says Paul Hughes, CEO of Libertate/RiskMD, an insurance agency/data analytics firm that specializes in providing coverage and consulting services to PEOs. “Within a policy term we can understand things like claims frequency and profitability, and we can get very good real-time month-to-month directional insight, in terms of here’s what you should have expected, here’s what happened, and as a result did we win or lose?”

gradient A.I., a transformational insurtech solution, aggregates client data from multiple sources, deposits it into a data warehouse, and normalizes the data in comprehensive data silos. “The uniqueness for PEOs and their service providers – and the power of gradient A.I. – emerges from the application of machine-learning capabilities on the PEOs data normalization,” says Stan Smith, a predictive analytics consultant and Milliman’s gradient A.I. practice leader. “With the gradient A.I. data warehouse, companies can reduce time, costs, and resources.”

To learn more, go to https://www.gradientai.com/. For more on how gradient A.I. and Libertate brought predictive analytics solutions to PEOs, go to http://www.milliman.com/gradient-AI-Libertate-case-study/.

About Milliman

Milliman is among the world’s largest providers of actuarial, risk management and technology solutions. Our consulting and advanced analytics capabilities encompass healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. For further information, visit milliman.com.

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