Risk Insider: Martin Frappolli

Grab Some Risk While You Can

By: | August 31, 2015 • 3 min read
Martin J. Frappolli, CPCU, FIDM, AIC, is Senior Director of Knowledge Resources at The Institutes, and editor of the organization's new “Managing Cyber Risk” textbook. He can be reached at [email protected]

Because many of us in the risk management business make thoughtful and prudent decisions in life, you may be among those people who choose a vehicle for pragmatic purposes.  You may consider size, safety, and fuel economy.

If you’re like me, you might choose that pragmatic car even though it doesn’t quicken your pulse in the way that a red convertible performance coupe might do.  “Someday” you might buy that performance or luxury car.

Well, here is your excuse to act sooner. We’re keenly aware of how each new vehicle has more “smart” features than previous models, taking us closer to the future reality of autonomous cars.

We’re rushing toward a model of streaming transportation – driverless vehicles that arrive when you need them, take you where you need to go, then head off to another purpose for another passenger.

There’s plenty of upside to this – reduced need for parking, removal of the costs of ownership and insurance, reduced congestion, great strides in safety. I take some comfort that by the time I am no longer physically able to drive, I won’t need to.  If I can use a smart phone or whatever devices succeed the smart phone, I can get a ride.

From a risk management perspective, the move to streaming, on-demand autonomous transportation is a clear winner.

From a risk management perspective, the move to streaming, on-demand autonomous transportation is a clear winner. Cars will be safer when the possibility of human error is removed. Car insurance exists, after all, primarily as a means to compensate victims of human error.

Beyond the savings for vehicle repair, the reduction in bodily injury events will be cause to celebrate. Further, much of the capital and resources now devoted to automobile insurance may be freed up for other productive uses.

The flip side, though, is that we’ll pass up on the joy of motoring, the very notion of motor sport. Just as we’ve surrendered the beauty of album art when we moved from vinyl LP to CD to MP3 to streaming music, so too we’ll leave behind the rush of a fast muscle car and the twisty mountain road handled by the finely tuned suspension of a sports car.

You need to manage your own personal appetite for risk. While you may increase your risk of a traffic ticket or even an accident if you aggressively exploit the power of a sports car, you also mitigate the risk because these high-end vehicles typically are built with better braking systems and advanced safety features.

Were you eying that red convertible in the showroom when you bought that SUV?  The time for you to own and drive a car for pleasure is going away. Our future selves will marvel at the old days when multi-ton machines traveled at 70 miles an hour piloted by humans and subject to fatal error.

The question remains about how soon – but the change is coming. Here’s your rationalization to buy that performance car before your only role is that of passenger.

More from Risk & Insurance

More from Risk & Insurance

2017 Teddy Awards

The Era of Engagement

The very best workers’ compensation programs are the ones where workers aren’t just the subject of the program, they’re a part of it.
By: | November 1, 2017 • 5 min read

Employee engagement, employee advocacy, employee participation — these are common threads running through the programs we honor this year in the 2017 Theodore Roosevelt Workers’ Compensation and Disability Management Awards, sponsored by PMA Companies.

A panel of judges — including workers’ comp executives who actively engage their own employees — selected this year’s winners on the basis of performance, sustainability, innovation and teamwork. The winners hail from different industries and regions, but all make people part of the solution to unique challenges.

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Valley Health System is all-too keenly aware of the risk of violence in health care settings, running the gamut from disruptive patients to grieving, overwrought family members to mentally unstable active shooters.

Valley Health employs a proactive and comprehensive plan to respond to violent scenarios, involving its Code Atlas Team — 50 members of the clinical staff and security departments who undergo specialized training. Valley Health drills regularly, including intense annual active shooter drills that involve participation from local law enforcement.

The drills are unnerving for many, but the program is making a difference — the health system cut its workplace violence injuries in half in the course of just one year.

“We’re looking at patient safety and employee safety like never before,” said Barbara Schultz, director of employee health and wellness.

At Rochester Regional Health’s five hospitals and six long-term care facilities, a key loss driver was slips and falls. The system’s mandatory safety shoe program saw only moderate take-up, but the reason wasn’t clear.

Rather than force managers to write up non-compliant employees, senior manager of workers’ compensation and employee safety Monica Manske got proactive, using a survey as well as one-on-one communication to suss out the obstacles. After making changes based on the feedback, shoe compliance shot up from 35 percent to 85 percent, contributing to a 42 percent reduction in lost-time claims and a 46 percent reduction in injuries.

For the shoe program, as well as every RRH safety initiative, Manske’s team takes the same approach: engaging employees to teach and encourage safe behaviors rather than punishing them for lapses.

For some of this year’s Teddy winners, success was born of the company’s willingness to make dramatic program changes.

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Delta Air Lines made two ambitious program changes since 2013. First it adopted an employee advocacy model for its disability and leave of absence programs. After tasting success, the company transitioned all lines including workers’ compensation to an integrated absence management program bundled under a single TPA.

While skeptics assume “employee advocacy” means more claims and higher costs, Delta answers with a reality that’s quite the opposite. A year after the transition, Delta reduced open claims from 3,479 to 1,367, with its total incurred amount decreased by $50.1 million — head and shoulders above its projected goals.

For the Massachusetts Port Authority, change meant ending the era of having a self-administered program and partnering with a TPA. It also meant switching from a guaranteed cost program to a self-insured program for a significant segment of its workforce.

Massport’s results make a great argument for embracing change: The organization saved $21 million over the past six years. Freeing up resources allowed Massport to increase focus on safety as well as medical management and chopped its medical costs per claim in half — even while allowing employees to choose their own health care providers.

Risk & Insurance® congratulates the 2017 Teddy Award winners and holds them in high esteem for their tireless commitment to a safe workforce that’s fully engaged in its own care. &

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More coverage of the 2017 Teddy Award Winners and Honorable Mentions:

Advocacy Takes Off: At Delta Air Lines, putting employees first is the right thing to do, for employees and employer alike.

 

Proactive Approach to Employee SafetyThe Valley Health System shifted its philosophy on workers’ compensation, putting employee and patient safety at the forefront.

 

Getting It Right: Better coordination of workers’ compensation risk management spelled success for the Massachusetts Port Authority.

 

Carrots: Not SticksAt Rochester Regional Health, the workers’ comp and safety team champion employee engagement and positive reinforcement.

 

Fit for Duty: Recognizing parallels between athletes and public safety officials, the city of Denver made tailored fitness training part of its safety plan.

 

Triage, Transparency and TeamworkWhen the City of Surprise, Ariz. got proactive about reining in its claims, it also took steps to get employees engaged in making things better for everyone.

A Lesson in Leadership: Shared responsibility, data analysis and a commitment to employees are the hallmarks of Benco Dental’s workers’ comp program.

 

Michelle Kerr is associate editor of Risk & Insurance. She can be reached at [email protected]