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2014 Teddy Award Winner

Quick to Act

Compass Group is lauded for its safety initiatives and for a return-to-work program that incorporates all of its business lines. 
By: | November 3, 2014 • 6 min read

A housekeeper at Memorial Health Systems — part of the food service and support services company Compass Group North America — was hard at work mopping a patient’s room one day. He misstepped, and before anyone could react, he was down on the ground with an injured lower back, shoulder and wrist.

Normally, slip and falls of this kind — consistently one of the leading causes of injury affecting workers of all stripes — can keep an employee out of work for long periods of time.

Not in this case.

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As usual, the employee received medical treatment and was given all of the following restrictions: No pushing. No pulling. No lifting more than five pounds, and no prolonged standing.

Fortunately, Compass Group — which boasts over 10,000 different locations across the country, offering corporate food services, facilities management, janitorial services, and more — had implemented an innovative return-to-work (RTW) program in early 2014.

That successful program and related safety initiatives are why the organization is one of the 2014 Theodore Roosevelt Workers’ Compensation and Disability Management Award winners.

The RTW initiative offers dozens of modified duties — tasks calling for minimal physical effort so that associates can get back to work in short order.

Ron Ehrhardt, vice president of operational safety, Compass Group

Ron Ehrhardt, vice president of operational safety, Compass Group

“A big part of the effort was to find different types of altered duty able to bring our associates back to work just as soon as possible — just not in their original capacity,” said Ron Ehrhardt, vice president of operational safety with Compass Group.

“They could be a cashier if not a grill cook,” in the food service units on a temporary basis, for instance, he said.

The housekeeper’s case presented a more difficult challenge, Ehrhardt said, since the Environmental Services Unit (EVS) at the worksite already had two employees on modified duty. With productivity strained, the organization was hard-pressed to provide modified duty for yet another worker.

Management was quick to act, however.

It identified a modified work opportunity with the company’s Patient Transport Division, another Compass Group business line, which includes companies such as Crothall Healthcare, Eurest Dining Services, Morrison Healthcare/Senior Living, TouchPoint, and Wolfgang Puck Catering and Events.

By moving the housekeeper and tasking him with administrative work in another unit, the company was able to maintain its productivity as well as return the man to work in an expedited fashion.

During subsequent doctor visits, the employee’s restrictions were expanded, to allow him to lift up to 15 pounds and engage in limited standing.

At the same time, one of the two employees in the EVS unit who’d previously been on modified duty was released to full duty, so management was able to move the housekeeper back to his home location to complete his modified duty roster.

The result: No loss of workdays for the injured worker or anyone else in the EVS unit.

Impressive Results

The proof of the pudding is in the eating, as they say.

“The policy we wrote on return-to-work was implemented in March,” Ehrhardt told Risk and Insurance®. And whereas Compass had been seeing a slight increase in out-of-work days prior to the new policy, the company has seen a 7 percent net improvement in this metric during the past fiscal year.

And unsurprisingly, thanks to a bonus structure which rewards Compass units that do not incur any injury claims in the course of a year, the company’s operating units are largely compensation claims free.

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“A full 75 percent of our accounts had zero claims in the last fiscal year, 2014, which is just ending,” said Palmer Brown, chief corporate investment & risk officer with Compass Group NA.

The return-to-work program was initiated through collaboration between the company’s safety leadership team and its TPA, Gallagher Bassett.

As part of the initiative, Compass Group implemented a RTW coordinator program. Based on specific criteria (i.e., severity, injury type and work status), cases are assigned to a RTW coordinator, a registered nurse, or closed.

For less complex cases, a RTW coordinator is given the goal of managing the RTW process and monitoring each medical visit to ensure that an injured worker gets back to full duty. The coordinator’s role is to expedite this process and communicate all pertinent information to the employer and adjuster.

A nurse is assigned to more severe cases. Similar to the RTW coordinator, the nurse works with the adjuster to get the associate back to work.

Safe Storage

Compass Group also recently implemented a “safe storage” plan, designed to eliminate unsafe situations that result in poor ergonomic lifting positions in storage rooms, janitorial closets, supply rooms, and walk-in refrigerators, among other areas.

“No two storage areas are the same, so the safe stacking and storage plan are meant to be used as a guide” to mitigate or eliminate injuries caused by heavy lifting, Ehrhardt said.

“We looked at our loss data and some of our associates were clearly getting injured — not because they were doing anything wrong, but because they were grabbing for items stored at the wrong shelf height,” he said.

For example, the safe storage model for a four-shelf unit is as follows:

• Shelf No. 1 (The top shelf) should have lighter, lesser-used items, lighter than 20 lbs.;

• Shelf No. 2 (second from the top) can be used for heavier items, but should be used mainly for the most frequently used items;

• Shelf No. 3 (second from bottom) is to be used for the heaviest, bulky, and difficult to handle items. The shelf should be outlined in yellow tape or paint; to indicate caution while lifting a heavy item; and

• Shelf No. 4 (the bottom shelf) should store lighter, less frequently used items as well as items with handles, which have not been stored on the middle shelves due to the ease of grasping and position.

In addition, he said, employees were getting injured removing heavy bags out of trash receptacles. Previously, trash bags were as large as 55 gallons, with no airflows to ease the task of pulling trash up and out. Thus, Compass Group decided to go with smaller-size vented receptacles that eliminated suction by roughly 50 percent.

These initiatives were implemented over the course of this year and have received numerous positive comments from account managers for ease of implementation and reduction of injuries.

Mike Recker, executive director with broker Willis Ltd. in Birmingham, England, applauded the new safety practices — particularly Compass’ latest return-to-work initiatives.

“A big part of the effort was to find different types of altered duty able to bring our associates back to work just as soon as possible — just not in their original capacity.” — Ron Ehrhardt, vice president of operational safety, Compass Group

In the seven years that Willis has been Compass Group’s global insurance broker, he said, “the management of risk, and specifically the safety of employees, have ranked high on the agenda at each and every Compass Group PLC board meeting,” he said.

“Under Brown’s leadership, Compass Group NA has achieved a clearer understanding of its risk profile and its injury loss drivers,” Recker added.

“We have [also] seen a closer working relationship with stakeholders including Compass TPA Gallagher Bassett as well as Willis, with a greater focus not just on cost management but how that cost is expended to achieve better results for its associates,” he said.

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“The return to work initiatives [Compass recently] implemented are prime examples of the kind of innovation that has been introduced,” said Recker.

“Clearly, having senior inspirational leadership who are out in the field working along associates and the importance of this kind of continued engagement will enable the continued development and deployment of still more fresh innovative ideas,” Recker said.

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Read more about all of the 2014 Teddy Award winners:

11012014_02_cs_honda_150x150Building Value with Trust: Honda of South Carolina boosted its involvement with injured worker cases, making a positive first impression on employees and health care providers.

 

11012014_03_cs_harley_150x150The TLC Behind the Roar: A proactive and holistic approach to employees’ well-being has resulted in huge reductions in work-related injury claims for Harley-Davidson.

 

11012014_04_cs_compass150x150Quick to Act: Compass Group is lauded for its safety initiatives and for a return-to-work program that incorporates all of its business lines.

 

 

11012014_05_cs_coldspring_150x150Healing the Healers: Teddy Award winner Cold Spring Hills Center for Nursing and Rehabilitation proved that even small organizations can make a huge difference in their employees’ lives.

Janet Aschkenasy is a freelance financial writer based in New York. She can be reached at [email protected]

More from Risk & Insurance

More from Risk & Insurance

Insurtech

Kiss Your Annual Renewal Goodbye; On-Demand Insurance Challenges the Traditional Policy

Gig workers' unique insurance needs drive delivery of on-demand coverage.
By: | September 14, 2018 • 6 min read

The gig economy is growing. Nearly six million Americans, or 3.8 percent of the U.S. workforce, now have “contingent” work arrangements, with a further 10.6 million in categories such as independent contractors, on-call workers or temporary help agency staff and for-contract firms, often with well-known names such as Uber, Lyft and Airbnb.

Scott Walchek, founding chairman and CEO, Trōv

The number of Americans owning a drone is also increasing — one recent survey suggested as much as one in 12 of the population — sparking vigorous debate on how regulation should apply to where and when the devices operate.

Add to this other 21st century societal changes, such as consumers’ appetite for other electronic gadgets and the advent of autonomous vehicles. It’s clear that the cover offered by the annually renewable traditional insurance policy is often not fit for purpose. Helped by the sophistication of insurance technology, the response has been an expanding range of ‘on-demand’ covers.

The term ‘on-demand’ is open to various interpretations. For Scott Walchek, founding chairman and CEO of pioneering on-demand insurance platform Trōv, it’s about “giving people agency over the items they own and enabling them to turn on insurance cover whenever they want for whatever they want — often for just a single item.”

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“On-demand represents a whole new behavior and attitude towards insurance, which for years has very much been a case of ‘get it and forget it,’ ” said Walchek.

Trōv’s mobile app enables users to insure just a single item, such as a laptop, whenever they wish and to also select the period of cover required. When ready to buy insurance, they then snap a picture of the sales receipt or product code of the item they want covered.

Welcoming Trōv: A New On-Demand Arrival

While Walchek, who set up Trōv in 2012, stressed it’s a technology company and not an insurance company, it has attracted industry giants such as AXA and Munich Re as partners. Trōv began the U.S. roll-out of its on-demand personal property products this summer by launching in Arizona, having already established itself in Australia and the United Kingdom.

“Australia and the UK were great testing grounds, thanks to their single regulatory authorities,” said Walchek. “Trōv is already approved in 45 states, and we expect to complete the process in all by November.

“On-demand products have a particular appeal to millennials who love the idea of having control via their smart devices and have embraced the concept of an unbundling of experiences: 75 percent of our users are in the 18 to 35 age group.” – Scott Walchek, founding chairman and CEO, Trōv

“On-demand products have a particular appeal to millennials who love the idea of having control via their smart devices and have embraced the concept of an unbundling of experiences: 75 percent of our users are in the 18 to 35 age group,” he added.

“But a mass of tectonic societal shifts is also impacting older generations — on-demand cover fits the new ways in which they work, particularly the ‘untethered’ who aren’t always in the same workplace or using the same device. So we see on-demand going into societal lifestyle changes.”

Wooing Baby Boomers

In addition to its backing for Trōv, across the Atlantic, AXA has partnered with Insurtech start-up By Miles, launching a pay-as-you-go car insurance policy in the UK. The product is promoted as low-cost car insurance for drivers who travel no more than 140 miles per week, or 7,000 miles annually.

“Due to the growing need for these products, companies such as Marmalade — cover for learner drivers — and Cuvva — cover for part-time drivers — have also increased in popularity, and we expect to see more enter the market in the near future,” said AXA UK’s head of telematics, Katy Simpson.

Simpson confirmed that the new products’ initial appeal is to younger motorists, who are more regular users of new technology, while older drivers are warier about sharing too much personal information. However, she expects this to change as on-demand products become more prevalent.

“Looking at mileage-based insurance, such as By Miles specifically, it’s actually older generations who are most likely to save money, as the use of their vehicles tends to decline. Our job is therefore to not only create more customer-centric products but also highlight their benefits to everyone.”

Another Insurtech ready to partner with long-established names is New York-based Slice Labs, which in the UK is working with Legal & General to enter the homeshare insurance market, recently announcing that XL Catlin will use its insurance cloud services platform to create the world’s first on-demand cyber insurance solution.

“For our cyber product, we were looking for a partner on the fintech side, which dovetailed perfectly with what Slice was trying to do,” said John Coletti, head of XL Catlin’s cyber insurance team.

“The premise of selling cyber insurance to small businesses needs a platform such as that provided by Slice — we can get to customers in a discrete, seamless manner, and the partnership offers potential to open up other products.”

Slice Labs’ CEO Tim Attia added: “You can roll up on-demand cover in many different areas, ranging from contract workers to vacation rentals.

“The next leap forward will be provided by the new economy, which will create a range of new risks for on-demand insurance to respond to. McKinsey forecasts that by 2025, ecosystems will account for 30 percent of global premium revenue.

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“When you’re a start-up, you can innovate and question long-held assumptions, but you don’t have the scale that an insurer can provide,” said Attia. “Our platform works well in getting new products out to the market and is scalable.”

Slice Labs is now reviewing the emerging markets, which aren’t hampered by “old, outdated infrastructures,” and plans to test the water via a hackathon in southeast Asia.

Collaboration Vs Competition

Insurtech-insurer collaborations suggest that the industry noted the banking sector’s experience, which names the tech disruptors before deciding partnerships, made greater sense commercially.

“It’s an interesting correlation,” said Slice’s managing director for marketing, Emily Kosick.

“I believe the trend worth calling out is that the window for insurers to innovate is much shorter, thanks to the banking sector’s efforts to offer omni-channel banking, incorporating mobile devices and, more recently, intelligent assistants like Alexa for personal banking.

“Banks have bought into the value of these technology partnerships but had the benefit of consumer expectations changing slowly with them. This compares to insurers who are in an ever-increasing on-demand world where the risk is high for laggards to be left behind.”

As with fintechs in banking, Insurtechs initially focused on the retail segment, with 75 percent of business in personal lines and the remainder in the commercial segment.

“Banks have bought into the value of these technology partnerships but had the benefit of consumer expectations changing slowly with them. This compares to insurers who are in an ever-increasing on-demand world where the risk is high for laggards to be left behind.” — Emily Kosick, managing director, marketing, Slice

Those proportions may be set to change, with innovations such as digital commercial insurance brokerage Embroker’s recent launch of the first digital D&O liability insurance policy, designed for venture capital-backed tech start-ups and reinsured by Munich Re.

Embroker said coverage that formerly took weeks to obtain is now available instantly.

“We focus on three main issues in developing new digital business — what is the customer’s pain point, what is the expense ratio and does it lend itself to algorithmic underwriting?” said CEO Matt Miller. “Workers’ compensation is another obvious class of insurance that can benefit from this approach.”

Jason Griswold, co-founder and chief operating officer of Insurtech REIN, highlighted further opportunities: “I’d add a third category to personal and business lines and that’s business-to-business-to-consumer. It’s there we see the biggest opportunities for partnering with major ecosystems generating large numbers of insureds and also big volumes of data.”

For now, insurers are accommodating Insurtech disruption. Will that change?

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“Insurtechs have focused on products that regulators can understand easily and for which there is clear existing legislation, with consumer protection and insurer solvency the two issues of paramount importance,” noted Shawn Hanson, litigation partner at law firm Akin Gump.

“In time, we could see the disruptors partner with reinsurers rather than primary carriers. Another possibility is the likes of Amazon, Alphabet, Facebook and Apple, with their massive balance sheets, deciding to link up with a reinsurer,” he said.

“You can imagine one of them finding a good Insurtech and buying it, much as Amazon’s purchase of Whole Foods gave it entry into the retail sector.” &

Graham Buck is a UK-based writer and has contributed to Risk & Insurance® since 1998. He can be reached at riskletters.com.