CIRMA Annual Meeting 2012

1. CIRMA
Annual Meeting
of Members
2012
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2. A Bridge to the Future
Risk Management Achievement Awards, 2012
Substantial Impact on Loss Cost Factors Outstanding Commitment &
Farmington Results from Safety Committees
New Canaan Cheshire
Plainfield Killingly
Plymouth Borough of Naugatuck
South Fire District Orange
Warren Southington
Establishing Risk Management as
New & Innovative Risk
an Organizational Priority
Colchester-Hayward Volunteer Fire Department Management Initiatives
East Shore Health District Avon
Manchester Coventry
New London Public Schools Enfield
Salem Regional School District 6
Westport
Sustained Risk Management Programs
Essex Exceptional Property Management
Killingly Public Schools Voluntown Public Schools
North Stonington Public Schools Weston Public Schools
Norwalk
Old Saybrook Public Schools
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3. CIRMA
Annual Meeting
of Members
2012
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4. A Bridge to the Future
Report of the Nominating Committee
The Nominating Committee, which under the CIRMA bylaws consists of the CCM Board of Directors,
proposes the following candidates for Directors of CIRMA for the year beginning February 1, 2012 and
ending the first day of the first month following the next annual meeting.
Ryan Bingham, Mayor of Torrington
Mark D. Boughton, Mayor of Danbury
Susan Bransfield, First Selectwoman of Portland
Stephen T. Cassano, Selectman of Manchester
Robert J. Chatfield, Mayor of Prospect
Robert M. Congdon, First Selectman of Preston
John DeStefano, Jr., Mayor of New Haven
John Elsesser, Town Manager of Coventry
Matthew B. Galligan, Town Manager of South Windsor
Mary Glassman, First Selectwoman of Simsbury
Barbara Henry, First Selectman of Roxbury
Scott Jackson, Mayor of Hamden
Cynthia Mangini, Councilmember of Enfield
Denise Menard, First Selectman of East Windsor
Richard Moccia, Mayor of Norwalk
Elizabeth C. Paterson, Mayor of Mansfield
Leo Paul, First Selectman of Litchfield
Herbert C. Rosenthal, Former First Selectman of Newtown
Mark Walter, First Selectman of East Haddam
Steven Werbner, Town Manager of Tolland
CIRMA bylaws permit additional nominations to be made if petitions proposing such nominations contain
4 signatures by members representing 30% of the total weighted votes of all members. Such petitions
must be received by the Secretary of CIRMA at least two weeks before the annual meeting.

5. A Bridge to the Future
Bruce A. Wollschlager
Risk & Insurance Magazine
5 Risk Innovator Award Nominee

6. CIRMA
President’s Report
Bruce A. Wollschlager, CPCU
January 27, 2012
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7. A Bridge to the Future agenda
1. The Year in Review
 Governance
 Financials
 Deliverables
 Members’ Equity
 Market Differentials
2. Risk Management in Action
 The Challenge
 The Deliverables
 The Impact
3. Next Steps
 Rates for 2012-13
 Members’ Equity Distribution for 2012
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8. A Bridge to the Future governance
2010-11 Board of Directors
Frank Chiaramonte, Harwinton, Chairman Timothy Griswold, Old Lyme
John Elsesser, Coventry, Vice Chairman Barbara Henry, Roxbury
Ryan Bingham, Torrington Scott Jackson, Hamden
Mark Boughton, Danbury Cynthia Mangini, Enfield
Susan Bransfield, Portland Denise Menard, East Windsor
Stephen Cassano, Manchester* Richard Moccia, Norwalk
Melody Currey, East Hartford Michael Pace, Old Saybrook
Robert Chatfield, Prospect Elizabeth Paterson, Mansfield
Robert Congdon, Preston Herbert Rosenthal, Newtown*
John DeStefano, New Haven* John Weichsel, Southington
Matthew Galligan, South Windsor Steven Werbner, Tolland
Sebastian Giuliano, Middletown
Mary Glassman, Simsbury
Supported by 101 municipal leaders on our Budget &
Audit, Claims, Operations & Underwriting, Investment, School
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District, and
Risk Management Advisory committees.

9. A Bridge to the Future financials
“The best way to predict the future…is to create it.”
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10. A Bridge to the Future financials
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11. A Bridge to the Future
financials
SIS
+%
219% LAP
243%
221%
WC
84%
176%
CIRMA Membership
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12. A Bridge to the Future deliverables
Products
2001 2011
Workers’ Compensation policy Workers’ Compensation LAP Cont.
 Managed Care Policy Enhancements
Liability-Auto-Property (St. Paul)  Volunteer Firefighter Accident  Terrorism coverage
Death & Disability  K-9 Protection
Third-Party Administration:  Range of deductibles  Road Treatment Coverage
 Heart & Hypertension  Retro program  Builder’s Risk
 Claims Administration  Stair-step  Garage-Keepers Liability
Liability-Auto-Property Programs Third-Party Administration:
 LAP Budget Stabilization  Heart & Hypertension
(3-year Rate Guarantee)  Claims Administration
 No-Police Program
 Flood program
 CBIZ Property Appraisal
 International Travel
 TULIP
Increased Limits
 Mechanical Breakdown
 Excess Liability to $35M
12  Removed minimum premium

13. A Bridge to the Future deliverables
Claims
Delivery on the Promise for 10 years….
99,696
10 Years Total Claims
8,305 11,134 10,252 10,181 10,347 10,448 10,534 9,786 9,148 9,561
2001-02 2010-11
$365,843,945 $539,539,079
Direct Paid 10 Years Total Incurred
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14. A Bridge to the Future deliverables
Reinsurance
 Safety National Casualty Corporation –
Workers’ Compensation
 Munich Re – Liability
 Lexington, RSUI, Swiss Re – Property
 Hartford Steam Boiler & Inspection Company –
Mechanical Breakdown
$53,163,631
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15. A Bridge to the Future deliverables
Automation
Where we were, 2001-02… Managed
Care
manual
WC
manual
Underwriting
manual Claims Claim
manual Intake
manual
manual
LAP
Underwriting
Finance Reinsurers
Actuaries
15 manual Auditors

16. A Bridge to the Future deliverables
Automation
Where we are now, 2012… Members
Finance
Fully Integrated System
• Claims
• Risk Management
manual • Underwriting
EDI data EDI data EDI data EDI data
transfer transfer transfer transfer
Reinsurers
Claim Managed Care
Actuaries LSS
Intake
Auditors
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17. A Bridge to the Future members’ equity
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18. A Bridge to the Future market differentials
How did we do this?
CIRMA vs Commercial
Market
 Focus  Focus
 Long-term relationships  Point-in-time relationships
 Stable prices  Opportunistic prices
 Reasonable prices  Return on Equity-Driven prices
 Members first  Shareholders first
 Statutory authority/Restrictions  Regulated/ Unrestricted
 Residual Market Mechanism vs  Insurer-focused segmentation and
Market Leadership position profitability (i.e. target certain risks)
 Cannot turn off the underwriting pen  Can turn off the underwriting pen
(e.g. September 11th)
 Easy entry/exit
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19. A Bridge to the Future risk management challenge
Changing Business
Challenges Desired Outcomes
Environment
 Introduction of New  Scope & Complexity  Proactive Risk
Lines of Business of Risk Management
 Diversity of Consultative
(LAP) Deliverables
 Membership Growth Membership
 Leverage
 Diversity  Alignment Information &
 Premium  Transactional Data
 Finance  Resources  Effective Risk
Management,
Training &
Education
 Develop Expert
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Resources

20. A Bridge to the Future risk management challenge
A View of Risk in 2001….
Risk
Hazard
• Employee Injury/Illness
• Third-Party Liability/Legal
• Weather Natural Disaster
• Pollution-Biohazards
• Property Damage
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21. A Bridge to the Future risk management challenge
An Enterprise View of Risk, 2012
Financial Strategic
• Cost of Loss/Risk Transfer • Managing Growth/Economic Development
• Tax Revenue • Political
• Intergovernmental Revenue • Technology
• Capital/Infrastructure Costs • Interagency Synergy
• Unfunded Mandates • Regional Planning
• Investment Management
• Contractual Liability
Risk
Hazard Operational
• Employee Injury/Illness • Governing Boards
• Third-Party Liability/Legal • Public Safety
• Weather Natural Disaster • Public Works
• Pollution-Biohazards • Regulatory
• Property Damage • Educational
• Employment Practices
• Facility Maintenance
21 • Workforce Productivity
• Labor Relations

22. A Bridge to the Future deliverables
Risk Management
Solutions
Financial Strategic
Developing
Resources
Analytics
Risk
Hazard Operational
Training & Education
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23. A Bridge to the Future deliverables
Risk Management  Consulting Services
Solutions  Risk Assessments
 Risk Management Learning
Resources
Consulting Services Growth
 Best Practice Guides
 White Papers
 E-Alerts
 Tailgate Topics
 Member Self-Assessments
 Resource Library
 Media Library
 Sample Polices & Procedures
4,500 hours
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24. A Bridge to the Future deliverables
Risk Management  Consulting Services
Solutions  Risk Assessments
 Risk Management Learning
WC
161 Resources
Risk Assessment Total
 Best Practice Guides
Growth
 White Papers
 E-Alerts
 Tailgate Topics
 Member Self-Assessments
LAP
LAP
42  Resource Library
 Media Library
WC
119  Sample Polices & Procedures
2001-02 2010-11
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25. A Bridge to the Future deliverables
Analytics CIRMA leverages technology and data to
optimize decision-making
243  Stewardship Reports
Total
Stewardship Report
Growth  Risk Management
Information Reports
 Custom Loss Analysis
 Total Cost of Risk Analysis
 On-Line Report Access
WC
131
 Master Data Management
2001-02 2010-11
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26. A Bridge to the Future deliverables
Training & Education
Over 10 years...
5,237 27,000+ attendees
attendees
Training Program trained
Growth
1,200+ training sessions
presented
180+ training programs
created
50,000+ hours of training
239
sessions
provided
2001-02 2010-11
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27. A Bridge to the Future deliverables
Developing Resources
Advisory Committees and Strategic Alliances
 Risk Management Advisory Committee  Connecticut Department of Education
 School District Advisory Committee  Connecticut Recreation and Parks Association
 NLC-RISC  Connecticut Department of Health
 Connecticut Department of Labor-Occupational  Connecticut Science Teachers Association
Safety & Health (CONN-OSHA)  Project to Increase Mastery in Mathematics and
 Connecticut Transportation Technology Institute Science (PIMMS)
 Connecticut Association of Street & Highway  Connecticut School Building and Grounds
Officials, Inc. Association
 Connecticut Police Officer Standards Training  Insurance Institute of America (The Institute)
Council
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28. A Bridge to the Future impact
LAP Pool
WC Pool
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29. A Bridge to the Future next steps
Rate Stability
10%
Workers’
Compensation
5% Liability-Auto-Property
05-06 06-07 07-08 08-09 09-10 10-11 11-12
-5%
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30. A Bridge to the Future next steps
Rate Stability, 2012-13
10%
Workers’
Compensation 0.0%
5% Liability-Auto-Property 0.0%
05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13
-5%
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31. A Bridge to the Future next steps
Members’ Equity Distribution,
2013
Shared Success!
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32. A Bridge to the Future next steps
“The best way to predict the future…is to create
it.”
2010-11 was a year of—
 Continued strong financial performance.
 Strengthened risk management deliverables.
 Stable & open markets.
 Shared success of all members.
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Thank You

33. CIRMA
Annual Meeting
of Members
2012