This document provides an overview of Sunbelt Insurance Holdings' workers compensation program. It was created in 2009 to address the needs of high-risk clients. The program focuses on addressing the true drivers of workers compensation costs, both controllable and non-controllable. A major controllable cost driver is the experience modification rating (e-mod), which is impacted by claims frequency, severity, data accuracy, and other factors. Sunbelt provides tailored solutions to clients such as preventative safety training, claims management, and fraud prevention to reduce costs long-term by lowering the e-mod. The goal is to reduce claims frequency by up to 30% and eliminate indemnity compensation to achieve maximum performance and reduced premiums at renewal.

1. Workers Compensation
Program Overview

2. In This Presentation
 About Sunbelt Insurance Holdings
 Workers compensation program background
 Our partners
 Workers compensation cost drivers
 Tailored solutions for the long term

4. Workers Compensation Program
PROGRAM BACKGROUND
 Created in 2009 from scratch.
Designed to address the needs of high risk
clients and hard to place exposures.
 Core competency: addressing true WC cost
drivers and catalysts for long term premium
increase.
 Secondary competency was market access
and placement.
 Tertiary focus was near term premium
reduction through policy brokerage.
WHERE WE ARE TODAY
 Program focus still centers on addressing catalysts for
long term premium increase.
 Unparalleled market access as a result of focused
expertise.
 Portfolio includes the most advanced work comp
solutions including
Guaranteed cost programs, performance based dividend
programs, loss sensitive retrospective plans, collateralized
deductible programs, captive insurance solutions.
Currently serve 1,140 policy holders, over 5,000
employees, and over 2,500 independent contractors in
26 states across the U.S. (*BOB data as of 05/2015)
 Year over year growth in excess of 100% for last 24
consecutive months with client retention in excess of
90% over the same period..

5. Our Carrier Partners
Not a complete list.

6. Our Ancillary Partners

7. Our Clients

8. Our Focus - Workers Compensation Cost Drivers
NON CONTROLLABLE
 State posted manual rates
 Industry loss trends
 NCCI industry statistical rating data & factors
 Carrier appetites and filed rate deviations
 Premium discount schedules
 Your competition’s performance
CONTROLLABLE
 Your Experience Mod

9. The Experience Mod
WHAT IS IT?
 Simply expressed, the mod is a ratio of actual losses to expected
losses over a 3 year period.
 If your actual losses are more than expected, then your mod is
over 1.0.
 If your actual losses are less than expected, then your mod is
under 1.0
A mod of 1.0 is exactly average. How much better than average
are you, or would you like to be?
Your mod determines your final workers compensation costs –
your premiums equal the manual premium multiplied by our mod.
WHAT CAUSES IT TO CHANGE?
In order of importance:
 Frequency of claim – indicated by “primary losses”
 Severity of claim – indicated by “excess losses”
 Incorrect reporting of claim data
 Misclassification of payroll
Industry peer performance
 Payroll / Premium size

10. Solutions – The to do list….
Reduce
frequency of
losses
Reduce severity
of losses
Review
experience mod
for accuracy
Correct errors
prior to the unit
state filing date
Assure that your
WC classification
is correct
Address fraud
And who does all of this…..

11. Our comprehensive solutions
….We do!
Frequency
Preventative safety measures
such as on site training*
Claims Triage
Severity
Comp claims management
(calculation, reserves, &
filings)
Return to work programs &
light duty
Data & Claim
Accuracy
Review of WC classifications
Annual review of e-mod for
accuracy
Correction of reserves prior to
unit stat filing
Fraud
Employee Background checks
SIU fraud analysis
Claims shadowing
Surveillance
Medical/Hospital Canvasing
Court & county record retrieval
Subrogation & apportionment

12. The Results - Reduced costs in perpetuity!
We seek to accomplish the following:
Reduce frequency of claim by up to 30%.
 Keep severity of claim to an absolute minimum.
 Reduce/Eliminate non “type 6” claims.
 Eliminate indemnity compensation entirely.
 Assist clients in achieving their minimum
statistical e-mod (maximum performance).
 Reduce fraud to zero.
 Maximize policy purchase options at renewal.
Maintain a happy and positive workforce
through the process.

13. Tailored solutions for our clients…
 We work with clients to determine what
portion of our client solution portfolio fits their
unique situation.
 Select & implement relevant solutions.
 Set mutually agreed upon performance goals.
 Track, measure, and report performance.
 Re-position and repeat year over year.
 Note – Sunbelt designs a custom cost sharing
program to fund the implementation of our
solutions.

14. End of presentation
Thank you for your time & consideration.