Agent News

We were thrilled to see so many of you at our recent Annual Agent Meetings. We greatly value the time we’re able to spend with our agency partners and appreciate you making the effort to join us.

As discussed at the meetings, Accident Fund had another record year. We hit or exceeded all of our top line and bottom line targets – and produced the highest written premium amount in company history.

	2016 Plan	2016 Actual
Written premium	$675.7M (+9%)	$685.4M (+10.6%)
New business	$137M	$148.6M
Premium retention	83.5%	85.7%
AY combined ratio	91.3%	88.9%
CY combined ratio	91.3%	83%
Underwriting gain	$57.1M	$109.8M

We realize these kinds of results couldn’t have been achieved without our strong agency partnerships – particularly in a softening market – and we were glad to share in our success through profit sharing. Accident Fund continues to pay out record profit sharing year after year…and 2016 was no different as we paid agents $26.4 million, up 23% from 2015.

Because our payout incentive is based on a three-year plan, we encourage you to retain your Accident Fund business so you’ll have our two most profitable years on record going into 2017!

FocalPoint
We’ve had tremendous results with FocalPoint and are looking forward to even greater partnership with you and this successful product in 2017. Last year, we more than doubled our FocalPoint goal, ending the year at over $35 million, a 41% increase, which accounted for almost a quarter of all new business written.

For those of you unfamiliar with FocalPoint, we partner with you to examine the business you have in place with other carriers to determine if Accident Fund is a better fit for your insured. By moving select business to Accident Fund, you can maximize revenue for your agency. We’d encourage you to discuss opportunities with your business development consultant frequently.

Superior Claims Services & Results

Our claims resolution strategies and continuous quality review program have helped customers reduce losses and workers’ compensation costs. We’ve achieved this through:

• AF CompAdvisor — Utilizing our patented, award-winning Care Analytics® technology, we’ve developed a database of physicians most knowledgeable in occupational medicine and loaded them into our mobile app. With a few simple clicks on a mobile device, a list of nearby doctors who can best treat workplace injuries is populated.
• Care Analytics — Through the use of our patented, award-winning technology, we utilize advanced analytics and years of data to identify physicians who understand work-related injuries and provide best-in-class care to facilitate employees’ recovery and early return to work. This helps to reduce risk and has resulted in significant claim cost savings.
• Narcotics Program — Our award-winning early detection narcotics platform utilizes real-time alerts to notify our clinical staff when an injured worker is at increased risk of opioid abuse or if potential fraud is suspected.
• Pharmacy Program – We’ve achieved significant cost avoidance through medication screenings, nurse case management review of medication alerts and access to specially trained pharmacists.
• Predictive Modeling — Utilizing data analytics for early detection of high exposure claims results in the avoidance of unnecessary litigation and medical costs.

Our innovative medical management strategies and superior claims services have helped us significantly outperform the industry. Over the last few years, these services have resulted in claim costs that are 16.5% below the industry – which means lower experience mods and premiums for employers and better care for injured workers.

We lower experience mods — By proactively caring for injured workers and helping business owners improve workplace safety, we have successfully reduced costs for our policyholders. The data in the graph illustrates the impact we can have on new business we write with a debit mod. An average experience mod beginning at 1.20 when written with Accident Fund is reduced by17% (to Average experience mod by renewal year 1.0) by its third year — and to a credit mod of .98 by the fourth year.

2016 Award Winners

We were also glad to celebrate our regional awards winners and President’s Club recipients, and announce our 2017 Incentive Trip Program. Check out the articles on both of these topics below.

To access the full presentations for your state, which also include regional information and results, log into our Agent Portal and click on Annual Agent Meetings.

In qualifying for Accident Fund’s President’s Club, the following agents contributed to our overall success in 2016 by helping us grow and retain profitable business. Thanks to their dedication and commitment to promoting our value to customers, they achieved very impressive results for Accident Fund. We appreciate their ongoing support, continued feedback and valued insight into the individual needs of their clients.

President’s Club qualifications for 2016 included written premium exceeding $2 million, a cumulative loss ratio of 50% or less, and premium retention of 82% or higher. We are proud to honor these agencies:

Our 2017 incentive program features a trip to beautiful Portugal. The mild climate, 3,000 hours of sunshine a year and breathtaking views of more than 500 miles of beautiful Atlantic Ocean beaches make Portugal a perfect destination. While the temperatures in May are moderate (mid-60s), this is by far one of the most magnificent times of year to visit Portugal with spring in the air and flowers in full-bloom.

Accident Fund guests will arrive in Lisbon — the hilly, coastal capital city, and one of the most charismatic and vibrant cities in Western Europe. Lisbon effortlessly blends traditional heritage with striking modernism — and offers a rich and varied history and lively nightlife. In fact, Lisbon is consistently recognized as one of the greatest cities in the world, a claim confirmed by the “Lonely Planet Guides,” which named Lisbon as one of the top 10 cities in the world to visit.

While in Portugal, trip winners will stay at the Pehna Longa Resort—a 5-star Ritz Carlton property. Set along the gorgeous Estoril coastal region of Portugal, the Penha Longa Resort traces its origins back to the 14th century. Aside from the historical Penha Longa Palace and landmark monastery, the hotel boasts six innovative restaurants, two world-class golf courses, a luxurious spa and many other top-notch amenities.

For more about our trip, click here to access our incentive trip website – be sure to check out the video while you’re there!

Arkansas

2802   Carpentry-Shop Only-& Drivers

5213   Concrete Construction NOC

5537   Heating, Ventilation, Air-Conditioning and Refrigeration

8835   Nursing-Home Health, Public and Traveling-All Employees

9083   Restaurant: Fast Food

Georgia

8380   Automobile Service or Repair Center & Drivers

5537   Heating, Ventilation, Air-Conditioning and Refrigeration Systems–Installation, Service and Repair and Drivers

8869   Professional Employees: School or College

8018   Store: Wholesale NOC

Illinois

9060   Club-Country, Golf, Fishing or Yacht-& Clerical

8868   College: Professional Employees & Clerical

Indiana

8868   College: Professional Employees & Clerical

8835   Home Health

Iowa

8380   Automobile Service or Repair Center & Drivers

8829   Convalescent or Nursing Home-All Employees

6229   Irrigation or Drainage System Construction & Drivers

3632   Machine Shop NOC

8835   Nursing-Home Health, Public and Traveling-All Employees

Kansas

8380   Automobile Service or Repair Center & Drivers

9015   Buildings-Operation-by Owner, Lessee, or Real Estate Management Firm: All Other Employees

5221   Concrete or Cement Work-Floors, Driveways, Yards or Sidewalks-& Drivers

8835   Nursing-Home Health, Public and Traveling-All Employees

9082   Restaurant NOC

Maryland

8835   Nursing-Home Health, Public and Traveling-All Employees              337,691.00

8864   Social Services Organization – All Employees & Salesperons              218,065.00

7231   Trucking: Mail, Parcel or Package Delivery-All Employees & Drivers              120,590.00

Michigan

8395   Automobile Repairs Facility

9015   Buildings-Operation-by Owner, Lessee, or Real Estate Management Firm: All Other Employees

9058   Hotel: Restaurant Employees

3400   Metal Goods Mfg. NOC

8835   Nursing-Home Health, Public and Traveling-All Employees

Minnesota

5020   Ceiling Installation-Suspended Acoustical Grid Type

8842   Group Homes – All Employees & Salespersons, Drivers

5478   Linoleum, Carpet, Vinyl, Ashpalt, or Rubber Floor Tile Installation

8835   Nursing-Home Health, Public and Traveling-All Employees

9016   Skating Rink Operation & Drivers

Mississippi

8380   Automobile Service or Repair Center & Drivers

8833   Hospital: Professional Employees

5183   Plumbing NOC & Drivers

9082   Restaurant NOC

Missouri

7380   Drivers, Chauffeurs & Their Helpers NOC-Commercial

5190   Electrical Wiring-Within Buildings & Drivers

5537   Heating, Ventilation, Air-Conditioning and Refrigeration

9052   Hotel: All Other Employees & Salespersons, Drivers

8835   Nursing-Home Health, Public and Traveling-All Employees

Nebraska            

8380   Automobile Service or Repair Center & Drivers

8855   Banks and Trust Companies – All Employees, Salespersons, Drivers & Clerical

5537   Heating, Ventilation, Air-Conditioning and Refrigeration

9052   Hotel: All Other Employees & Salespersons, Drivers

3724   Machinery or Equipment Erection or Repair NOC & Drivers

North Carolina

8835   Nursing-Home Health, Public and Traveling-All Employees              337,691.00

8864   Social Services Organization – All Employees & Salespersons              218,065.00

7231   Trucking: Mail, Parcel or Package Delivery-All Employees & Drivers              120,590.00

South Carolina

8835   Nursing-Home Health, Public and Traveling-All Employees              337,691.00

8864   Social Services Organization – All Employees & Salespersons              218,065.00

7231   Trucking: Mail, Parcel or Package Delivery-All Employees & Drivers              120,590.00

South Dakota

8380   Automobile Service or Repair Center & Drivers

9012   Buildings-Operation-by Owner, Lessee, or Real Estate Management Firm: Prof. Employees, Property Mgrs and Leasing Agents

8835   Nursing-Home Health, Public and Traveling-All Employees

8832   Physician & Clerical

9082   Restaurant NOC

Tennessee          

8380   Automobile Service or Repair Center & Drivers

5190   Electrical Wiring-Within Buildings & Drivers

8835   Nursing-Home Health, Public and Traveling-All Employees

9083   Restaurant: Fast Food

Texas

9014   Buildings-Operation by Contractors

9015   Buildings-Operation-by Owner, Lessee, or Real Estate Management Firm: All Other Employees

5183   Plumbing NOC & Drivers

9079   Restaurant NOC

Virginia

8835   Nursing-Home Health, Public and Traveling-All Employees              337,691.00

8864   Social Services Organization – All Employees & Salespersons              218,065.00

7231   Trucking: Mail, Parcel or Package Delivery-All Employees & Drivers              120,590.00

Wisconsin

8835   Home Health

3113   Tool Manufacturing-Not Drop or Machine Forged-NOC

Pending Rate Changes

The following states have a pending rate change for Accident Fund. New rates are not yet available in eLink; however, some renewing policies may be viewable in the renewal index. Remember to refrain from releasing quotes and renewals for these states until rates are updated, and check our website for updates.

State	Effective   Date
Arkansas	07/01/17
Maine	04/01/17
Montana	07/01/17
South Dakota	07/01/17
Texas	07/01/17
Vermont	04/01/17

New Rates Now Available in eLink

Updated rates are now accessible in eLink for the following states:

State	NCCI/ Bureau Impact	Effective Date	Available in eLink as of:
Alabama	-12.1%	03/01/17	12/23/16
Connecticut	-10.9%	01/01/17	01/13/17
Georgia	-0.5%	07/01/17	02/24/17
Louisiana	-9.8%	05/01/17	02/24/17
Mississippi	-6.1%	04/01/17	01/27/17
Pennsylvania	-6.21%	04/01/17	02/24/17
Tennessee	-12.8%	03/01/17	01/27/17
Vermont	-7.9%	04/01/17	03/03/17
Virginia	-5.5%	04/01/17	01/13/17

Please be sure to discuss pricing options for all new business and renewals with your business development consultant.

Arkansas

Regions Insurance Inc. Fort Smith, Fort Smith

Rogers Insurance Agency, Inc., Rogers

 

Georgia

Skelton – Morris Associates LLC, Hartwell

Strawn and Company Insurance LLC, McDonough

USI Insurance Services, LLC, Atlanta

 

Illinois

Critchell Miller & Petrus Inc, Elmhurst

Unland Co., Pekin

 

Indiana

Northern Lakes Insurance, Inc, Syracuse

Shepherd Insurance, LLC, Carmel

 

Iowa

Friedman Insurance, Inc., Dubuque

Harper Insurance Agency, LLC, Manchester

 

Kansas

KFSA Insurance, LLC, Hutchinson

Madrigal & Associates, Inc., Wichita

 

Maryland

Consolidated Insurance Center, Inc., Owings Mills

Early Cassidy & Schilling, Inc, Rockville

PSA Insurance, Inc., Hunt Valley

 

Michigan

Kapnick & Co., Inc., Adrian

Van Wyk Risk Solutions, Grand Rapids

 

Minnesota

Ahmann & Martin Co., Eden Prairie

Maguire Agency Inc, Roseville

 

Mississippi          

GCM Insurance Agency, LLC, Columbus

Insurance & Risk Managers, Brookhaven

Insurance Associates,of Magee, Inc., Magee

 

Missouri

Charles L. Crane Agency Company, Saint Louis

Risk Innovations LLC, Lees Summit

 

Nebraska

Marcotte Insurance Agency, Inc., Omaha

UNICO Group, Inc., Lincoln

 

North Carolina

Faw Insurance Agency, Inc., North Wilkesboro

Hub International Southeast, Burlington

Wells Fargo Insurance Services USA Inc., Charlotte

 

South Carolina

Bradley Insurance Group LLC, West Columbia

CWS Insurance Agency, Inc., Spartanburg

Southern Risk Insurance Svcs, Anderson

 

South Dakota

Black Hills Insurance Agency Inc., Rapid City

The Insurance Connection, Sioux Falls

 

Tennessee

Powell & Meadows Insurance Agency, Inc., Carthage

White & Associates Insurance Agency Inc., Dyersburg

Wyatt Insurance Services, Inc., Knoxville

 

Texas

Independent Insurance Group Inc, Dallas

MHBT Inc., Dallas

 

 

Virginia

Foundation Insurance Group Inc, Falls Church

Nansemond Insurance Agency, Inc., Suffolk

Preferred Insurance Services, Inc., Fairfax

 

Wisconsin

Johnson Insurance Services, Inc., Racine

1. I. C. Inc., Onalaska

Federal

AF Group Outlines Concerns with Latest Draft of Insurance Security Standards

The National Association of Insurance Commissioners (NAIC) has produced Data Security Model Law Draft No. 3. AF Group Government Affairs, in coordination with Information Security, remains engaged in the national cyber debate as an active participant in the American Insurance Association’s (AIA) Cyber Task Force. We recognize a need to establish security standards for the industry, but we need a well-drafted law that gives insurers a clear path to compliance without imposing burdens that do not help consumers. We believe it is essential that any model that is adopted by the NAIC and enacted in the states reflects reasonable and practical breach response protocols, protects consumers and is adopted uniformly throughout the country.

AF Group’s primary concern with the NAIC Insurance Data Security Model Law Draft No. 3 pertains to uniformity and the fact that NAIC cannot make the current landscape more complicated for insurers by creating an additional layer of potentially conflicting security and breach requirements. Additionally, there can be minimal or no commissioner/legislative editing of the model by each individual state or collectively through a lead state. Neither of these concerns has been addressed to date.

Moving Forward

Moving forward – Given that this is the third draft, regulators and the industry are experiencing growing fatigue with this issue. At this point, our AIA cyber task force intends to submit comments which clearly communicate very serious changes need to be made to this draft for us to support this model. At this time, AIA is working to provide examples of our continued objections in order to include in a formal response.

State

Florida’s Proposed House Committee Bill Would Change Fees

The 2017 Session of the Florida Legislature convened on Tuesday, March 7, and will last 60 days.  Workers’ compensation legislation seeking to address not just the issue of attorneys’ fees but also adoption of a loss cost rating system and other revisions have been released by the Senate (SB 1582) and the House. Recently, the House Insurance & Banking Subcommittee held an initial meeting to consider a Proposed Committee Bill (PCB) that would among other things retain the statutory attorneys’ fee schedule but provide for an hourly “departure fee”, adopt a loss cost rating methodology, and provide for medical fee schedules.  Initial analysis executed by the National Council on Compensation Insurance (NCCI) indicates the PCB will generate significant system savings.

Iowa Senate to Review House Work Comp Bill

The Senate is scheduled to consider House File 518 this week, which was passed by the Iowa House of Representatives. HF 518 reduces benefits for shoulder injuries by 80%, by changing description from full-body injury to scheduled injury. The proposal would not allow administrators from considering loss of earning capacity when establishing a claimant’s permanent partial disability award if the claimant returns to work at the same or greater salary. The bill was amended to include up to $15,000 in vocational rehabilitation for injured workers who can no longer pursue employment in their previous line of work. The legislation was also amended to remove language that ended benefits for injured workers at the age 67 or 150 weeks after the date of injury.

WorkCompCentral reported claimants’ attorneys flooded the Iowa Division of Workers’ Compensation with an extraordinary number of filings of original notices and petitions. From March 1-13, there were 854 new filings, compared to an average of 400 per month.

Wisconsin Gov. Scott Walker-Backed Bill Would Impact State’s Labor Boar              

Wisconsin Governor Scott Walker has introduced Assembly Bill 64, a two-year budget bill, to the State Legislature. Within AB 64, there’s a provision that would eliminate the state’s Labor and Industry Review Commission (LIRC), which reviews workers comp administrative decisions. AF Group in coordination with the Wisconsin Insurance Alliance is currently analyzing the potential impact of this proposal on the industry. As more details are solidified, we’ll be sure to keep you informed.

Industry Leaders to Pursue Rule Changes in Indiana to Address Access to High-Risk Pool

Majority Floor Leader Representative. Matt Lehman (R-Berne) and House Insurance Committee Member Rep. Peggy Mayfield (R-Martinsville) both introduced separate language in the 2017 session to address increased access to the high-risk workers’ compensation pool. Indiana currently has a +/-50% range for schedule rating. Rep. Lehman’s proposal in House Bill (HB) 1318 would have made a change to +/-25%. Rep. Mayfield proposed limiting the ability to deny access to the high-risk pool in HB 1559.

An agreement was reached to remove the language from HB 1318 as well as not moving forward with 1559. Instead, the industry led by the Insurance Institute of Indiana will work with the Indiana Compensation Rating Bureau (ICRB) on a solution outside of the legislature. The ICRB believes changes can be addressed through their rules as opposed to a statutory change.  The ICRB suggests a solution to file a new rule with the Commissioner, based on the existing national rule in the NCCI Basic Manual, which defines a reasonable offer in the regular market. The national rule defines “reasonable” when the regular market offer is less than or equal to the assigned risk market premium. Thus, any offer above the assigned risk market premium would not meet the definition of reasonable, and the employer would qualify for an assigned risk policy.

Industry Neutral on Proposed Work Comp Changes in Illinois

The Illinois Senate has introduced a bipartisan package of 13 bills intended to provide framework for ending the current budget impasse and address workers’ compensation reform. Senate Bill 12, which addresses work comp, is neither good enough to support nor awful enough to oppose at the present time, so the industry has taken a neutral position, and insists on the need for the key improvements.

Several Work Comp Bills Under Consideration in Oklahoma

AF Group legislative counsel reports there are several workers’ comp bills that are percolating currently, but will most likely end up in a conference committee in May, as per custom in Oklahoma. HB 1462 and SB 737 are the major omnibus bills that will attempt to address some of the roughly 40 constitutional infirmities of the 2013 reform bill identified by the courts thus far. The proponents of opt-out and their legislative supporters hope to include provisions sufficient to resuscitate that alternative system. We have a long way to go legislatively in 2017 for Oklahoma.