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Annual mtgslides 2015_annotationsv2


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CIRMA 2015 Annual Meeting

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Annual mtgslides 2015_annotationsv2

  2. 2. AGENDA YEAR IN REVIEW: Excellent Results Governance Financials Operational Highlights  Membership  Managed Care  Training & Education LOOKING AHEAD: Building a New Model People Automation Information Pricing 2015-16 Members’ Equity Distribution 1 “CIRMA achieved a number of remarkable accomplishments in 2013-14 that give us the opportunity to create a new CIRMA.”
  3. 3. GOVERNANCE – YEAR OF ACTION Board of Directors Budget and Audit Committee Claims Advisory Committee Investment Committee 12 Members Investment Committee Law Enforcement Advisory Committee 15 Members 26 Members 16 Members16 Members12 Members20 Members6 Members Operations and Underwriting Committee Risk Management Advisory Committee School District Advisory Committee CIRMA GOVERNANCE 2 19 Members “Over 110 public officials serve on our CIRMA Board of Directors and Committees. They work with us to support our mission and advance the wellbeing of towns and schools across Connecticut.”
  4. 4. Audits (STAT, GAAP, & State 5-Year Financial). All clean and unqualified. GOVERNANCE – YEAR OF ACTION 3 Approved aggregate rates for each pool. Ensured portfolio compliance and performance. Approved all claim settlements in excess of office authority. Total claims paid: $69,977,909. Approved transition of the new First Notice of Losses to “The Network”. Approved the reinsurance program with current providers. Expanded Committee membership. “Jointly, our governing bodies reviewed and approved a number of programs and activities this year…”
  5. 5. Approved new Risk Management Best Practice Guides and training tools: Approved the RFP for the new fixed income investment manager. GOVERNANCE – YEAR OF ACTION Approved changes in Liability-Auto-Property Program: 4  Crime  Terror  Stated coverage for emergency vehicles  Liability-Auto-Property coverage clarification  Aquatic Safety  Builders’ Risk  CD training kits  Preventing Sexual Abuse & Harassment  Return-to-Work & Law Enforcement Return-to-Work Represented the membership at the NLS-RISC Trustee National Conference and the Risk Management Achievement Awards Breakfast. “Under their guidance, CIRMA has established itself as the market leader for municipal insurance and risk management. CIRMA is now one of the premier public entity pools in the nation. Congratulations!”
  6. 6. FINANCIAL HIGHLIGHTS 2013-14 2013-14 2012-13 +/− Total Assets $310,532,151 $296,830,301 (+4.6%) Total Liabilities $208,782,962 $211,312,555 (−1.2%) Total Members’ Equity $99,219,597 $88,047,339 (+12.7%) 2014 2013 2012 Gross Premium to Surplus Ratio 1.01 : 1 1.11 : 1 1.14 : 1 Net Premium to Surplus Ratio .82 : 1 .85 : 1 .90 : 1 2013-14 auditors, Grant Thornton LLP GAAP STAT Gross Premium $86,402,368 (+8.0%) Net Premium $70,478,375 (+7.5%) 5 “CIRMA had an incredibly successful financial year. Our Members’ Equity grew by $11 M, to reach a new high of almost $100 million. Our premiums reached $86M, also a new high.”
  7. 7. OPERATIONAL HIGHLIGHTS 6 MEMBERSHIP – PREMIUM & MEMBERS’ EQUITY 2013-142003-04 $9M – Members’ Equity Distributions over 3 years +12.7% +8.0% MEMBERS’EQUITY$99MILLION PREMIUMS$86MILLION 2013-14 “We continued our steady, disciplined growth of capital to balance the increase in assumed risk.”
  8. 8. OPERATIONAL HIGHLIGHTS 2013-14 1999-00 10New Members: 7 MEMBERSHIP GROWTH 2013-14 LIABILITY-AUTO-PROPERTYSISWORKERS’COMPENSATION 1576211 Town of Bethel & Public Schools Town of Chaplin Town of Eastford & Public Schools Estuary Transit District Town of Griswold & Public Schools Town of Middlebury Town of Middlefield Town of Watertown & Public Schools Town of Willington & Public Schools Town of Vernon & Public Schools “Our renewal rate for the past three years has exceeded 99%. And in 2013-14, we added ten new members.”
  9. 9. $78,704,750 $84,571,270 $86,834,000 $88,047,338 $99,219,596 Equity Equity Growth - $20.5 million (+ 26.1%) OPERATIONAL HIGHLIGHTS 8 MEMBERSHIP – FOUR-YEAR TRENDS Premium Growth - $18.9 million (+ 26.3%) 2010-11 2011-12 2012-13 2013-14 2014-15 $71,226,714 $72,566,157 $79,105,758 $85,273,355 $90,095,969 Premium “Our total premiums have grown by about 26%, over four years. The growth in exposure and new business, and our need to balance it with Surplus, is the reason we did not recommend or authorize a Members’ Equity Distribution in 2013-14. “We succeeded in adequately capitalizing our new risk by growing our Members’ Equity by $20.5M (not including $9M in distributions) over the same period—right in step with our growth in risk, ensuring CIRMA’s continued financial strength.”
  10. 10. OPERATIONAL HIGHLIGHTS 9 CIRMA’S WORKERS’ COMPENSATION MANAGED CARE PROGRAM Telephonic & Field Case Management. Preferred Provider Network. Catastrophic Nurse Case Management. Pharmacy network, medical imaging, and durable medical equipment programs. Physical therapy providers. State-of-the-art medical bill review system. Utilization review. “With our new growth, we saw an opportunity to craft our own proprietary Medical Care Program, CIRMAcare. The plan provides a Gold Standard of Care to injured employees through a network of preselected doctors, hospitals, and other medical providers. “CIRMAcare ensures that care is tailored to the injury-care needs and workplace demands of our members.”
  11. 11. OPERATIONAL HIGHLIGHTS 2009-10 10-11 11-12 12-13 2013-14 $36.4M $41.7M $32.1M $35.5M $28.9M 6,421 claims 6,967 claims 6,297 claims 6,408 claims 6,572 claims EMPLOYEES TRAINED 10 213training sessions 9new training topics $24.1M 2,772 claims 3,043 claims 2,487 claims 2,697 claims 2,673 claims $24.3M $24.2M $29.7M $18.1M 2009-10 10-11 11-12 12-13 2013-14 WORKERS’ COMPENSATION POOL LIABILITY-AUTO-PROPERTY POOL RISK MANAGEMENT TRAINING & EDUCATION “The core of our success is our commitment to changing behavior through training and education. Changing loss drivers through risk management programs allows CIRMA to provide rate stability and open markets.”
  12. 12. Provided services to largest number of members in our history. Established strongest financials in our history. Successfully assimilated the most risk in our history. Impacted most behaviors in our history. Established our first ever proprietary Managed Care Program. Delivered claims payment of $70 million over the 12 months. IN SUMMARY 2013-14 A Year of New Benchmarks: 11 “We achieved many “firsts” for CIRMA this year…
  13. 13. LOOKING AHEAD: Building a New Model Improved Decision-Making & Applied Resources 12 “We crafted a new integrated model that maximizes our resources and is focused on improving decision-making in our core skills.”
  14. 14. PEOPLE 13 People are by far CIRMA’s most valuable resource “Our Claims, Underwriting, and Risk Management professionals are the foundation of our service deliverables. They define our success.”
  15. 15. PEOPLE 14 Integrated Approach to Member Service RISK MANAGEMENT UNDERWRITINGBUSINESS ANALYTICS CLAIMS • In Claims, we crafted a more aligned process where tasks and talent were married with speed and accuracy. • In Risk Management, we focused our training programs based on our data analytics. • We reengineered our Underwriting processes, authorities, and cross functional communication. • We combined our Business Analytics unit with our IT professionals to craft a unified development process. The result…greater integration, more efficient workflows, and greater employee development.”
  16. 16. PEOPLE 15 Integrated Approach to Member Service
  17. 17. AUTOMATION VISION STATEMENT Utilize Best-in-Class Systems. Improve integration of data. Continue development of analytics capabilities. Maintain high level of data quality. Optimize human resources. Enhance and expand use of business intelligence tools. Continue improvement of member access/transactions. Leveraging technology and data to optimize decision-making 16 “To meet the needs of the future, we crafted a new automation approach.”
  18. 18. AUTOMATION MILESTONES 17 “Our infrastructure development timetable was impossibly tight: • We deployed a new agency management system, EPIC. • We updated Great Plains, our financial accounting system. • We integrated and deployed the AON/Mitchell Managed care systems. • We implemented a Predictive Analytics system in our Workers’ Compensation Claims Department. • Finally, we will be implementing a new rating and underwriting system, Insurity. our success as an organization.”
  19. 19. AUTOMATION UPDATE Install Storage Area Network Replace all Desktops/Dual Monitors Upgrade to Windows 7 Professional Upgrade MS Office 2013 Upgrade Back Office Server /SQL Databases Upgrade IVOS March 2015Insurity Underwriting System Infrastructure Advances 2014 Automation Projects 2014 MARCH APRIL MAY JUNE JULY AUG SEPT OCT Applied EPIC Agency Mgmt. System Great Plains Accounting System Aon/Mitchell Managed Care WC Predictive Analytics MARCH APRIL MAY JUNE JULY AUG SEPT OCT DONE DONE DONE DONE DONE DONE DONE DONE DONE DONE 18 “All projects were executed successfully.”
  20. 20. PRIOR AUTOMATION ENVIRONMENT 19 “We moved from a transaction-based approach, focused on process efficiency…
  21. 21. TODAY’S AUTOMATION ENVIRONMENT 20 “…To an environment with improved data analytics, communication, efficiencies, and productivity. Our new systems offer enhanced data management and data sharing, and greater flexibility, and improved enterprise risk exposure analysis. We created an environment for improved and better-targeted decision-making.”
  22. 22. RATE STABILITY 21 “Along with early announcements of rates and multi-year pricing, we have delivered consistent, stable rates over the past decade. Our crowning achievement has been providing rate stability while expanding our membership and exposure base.”
  23. 23. RATES 2015-16 22 Workers’ Compensation: 0.67% 6 YEAR AVERAGE RATE IMPACT Liability-Auto-Property: 0.58% Workers’ Compensation Liability-Auto-Property 0.0% 0.0% “In fulfillment of our mission, our Board of Directors has approved aggregate rate indications of…
  24. 24. CUMULATIVE SIX-YEAR RATE COMPARISON 27.8% NCCI 4.0% WC 3.5% LAP CIRMA’s long-term rate stability is shown in comparison to NCCI’s cumulative six-year rate need. 23 NCCI’s rate is 695% higher than CIRMA’s rate. “Our pricing stands in sharp contrast to our competitors in Connecticut. The NCCI’s rate indications are 700% higher than ours. That’s value in membership.”
  25. 25. MEMBERS’ EQUITY DISTRIBUTION 2013-142012-132011-122010-11 $2.8 M $3.0 M Members’Equity-$99Million $9 Million Members’ Equity Distributions, over 3 years 24 $3.2 M “What about the potential for a Members’ Equity Distribution next year? We have once again successfully achieved our financial capital goals, and I fully anticipate providing the Board a distribution recommendation for their consideration. You, our members, will be the first to hear in March!
  26. 26. Thank You! 25 CONNECTICUT INTERLOCAL RISK MANAGEMENT AGENCY CIRMA “2013-14 was a great year for growth, profitability, increased financial strength, and building for the future. We did not achieve these results alone. Our business partners make this success possible. Our reinsurance partners stand side by side with us, insuring our member’s exposures.” “The entire CIRMA team stands committed to the success of our members. Thank you for your loyalty and trust.”