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2016 Teddy Awards

Recognizing Excellence

The judges of the 2016 Teddy Awards reflect on what they learned, and on the value of awards programs in the workers' comp space.
By: | November 2, 2016 • 5 min read

This year, our inbox was near to bursting with Teddy Award applications — we could barely keep up. What a fabulous problem to have.

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It was gratifying to read about the outstanding efforts happening across the country, across all industries. So many programs rose to the top that it was a challenge to pare them down, let alone select overall winners.

For help in selecting winners, we turned to a panel of experts with many decades of hands-on experience. These leaders know what it takes to develop and maintain a truly excellent injury prevention and workers’ compensation program.

We asked the judges to reflect upon the experience.

112016_01_coverstory_cenicerosRoberto Ceniceros, senior editor, Risk & Insurance®; program chair, National Workers’ Compensation and Disability Management Conference® & Expo

Q: What do you think is the most interesting trend among the Teddy applications this year?

This year’s applicants showed a willingness to apply real creativity to address their toughest comp challenges. That required them to put in the hard work necessary to implement their creative strategies. The trend also shows real bravery because creativity implies they weren’t always borrowing tested ideas as much as they were finding their own path that others can now learn from.

Another trend I saw among them is a growing capacity to engage workers or enlist their help in developing safety strategies and adopting helpful claims management practices. One of this year’s Teddy Award winning companies, for example, enlisted the help of its construction workers to design accommodating return-to-work tasks.

 

noonanMark Noonan, managing principal, casualty practice, Integro Insurance Brokers

Q: As you evaluated this year’s Teddy Awards finalist applications, what struck you in terms of how much employer safety and workers’ comp programs have evolved since you’ve been in the industry?

Through a combination of employees demanding and assisting in developing safe work environments and procedures; enlightened employers who see the value of skilled healthy workers who provide a higher quality deliverable; the government agencies who provide expert guidance and, when necessary, legal recourse for dangerous exposures; and safe workplace advocates who provide assistance and act as watchdogs, safety is now a primary focus in the workplace.

While costs continue to rise as wages and cost of medical treatment and medication continues an upward trajectory, both frequency and severity are declining, with frequency declining every year except one for the last 20-plus years. Today, even companies that are viewed as having high risk job assignments measure the time between lost-time injuries in weeks or months not hours or days as in the last century.

112016_01_coverstory_amielAnne-Marie Amiel, risk manager, Columbus Consolidated Government, Ga.; 2015 Teddy Award winner

Q: Has learning about other strong safety and workers’ comp programs been of value to you in your quest to continuously improve your own?

Winning a Teddy Award for our program was one of the proudest moments of my life, but the ability to interact with other creative, successful program managers at the conference and thereby gain more ideas for even more improvement was an invaluable long-term benefit.

Being given the opportunity this year to take a look at how other highly successful programs have made a difference in the lives of their employees has been an honor, and the creativity of some of these managers inspires me to go even further in our program. Success is a process, not a destination, and I truly believe that those who are innovative can take creative ideas and build on them within their own organization. None of us own all the good ideas, but the ability to learn from and share with others will result in improvement in all sectors of the workers’ compensation world.

112016_01_coverstory_russoCaryl Russo, senior vice president, Barnabas Health Corporate Care; 2015 Teddy Award Winner

Q: From your perspective, how does recognizing employer programs benefit or enrich the workers’ comp community as a whole?

[Forums like the] Teddy Award provide a tremendous opportunity for sharing creative ideas and innovative programs among a wide range of companies and industries. This level of information exchange has far-reaching implications and benefits, and provides the foundation for other companies to consider implementing similar programs, again shining a spotlight on the area of workers’ compensation. There is a halo effect [as] other companies in the region or in the industry sector [look more closely] at how to achieve similar results and accolades. In essence, when we highlight an individual company’s success, we have the opportunity to elevate the broader workers’ compensation platform.

Most importantly, recognizing employer programs provides the chance to acknowledge the hard work of risk managers and other team members who deal with workers’ compensation on a daily basis and are often unsung heroes within their respective organizations.

112016_01_coverstory_saddyJennifer Saddy, director of workers’ compensation, American Airlines; 2015 Teddy Award winner

Q: What advice would you give to next year’s Teddy Award applicants?

There are a lot of great employers doing a lot of really great proactive things to prevent occupational injuries from occurring and improve the process when injuries do occur.  My recommendation for next year’s Teddy Award applicants is to not only highlight the changes your organization has made but also clearly outline the results that those changes were able to achieve.

I also recommend the applicants illustrate the obstacles and challenges they’ve had to overcome in order to achieve the results. This provides the full picture and better helps to understand not only the issues, the changes, but also how significant those changes may have been to the organization.

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Read more about the 2016 Teddy Award winners:

target-150x150Bringing Focus to Broad Challenges: Target brings home a 2016 Teddy Award for serving as an advocate for its workers, pre- and post-injury, across each of its many operations.

 

hrt-150x150The Road to Success: Accountability and collaboration turned Hampton Roads Transit’s legacy workers’ compensation program into a triumph.

 

excela-150x150Improve the Well-Being of Every Life: Excela Health changed the way it treated injuries and took a proactive approach to safety, drastically reducing workers’ comp claims and costs.

 

harder-150x150The Family That’s Safe Together: An unwavering commitment to zero lost time is just one way that Harder Mechanical Contractors protects the lives and livelihoods of its workers.

 

More coverage of the 2016 Teddy Awards:

Recognizing Excellence: The judges of the 2016 Teddy Awards reflect on what they learned, and on the value of awards programs in the workers’ comp space.

Fit for Duty: 2013 Teddy Winner Miami-Dade County Public Schools is managing comorbid risk factors by getting employees excited about healthy living.

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Saving Time and Money: Applying Lean Six Sigma to its workers’ comp processes earned Atlantic Health a Teddy Award Honorable Mention.

Caring for the Caregivers: Adventist Health Central Valley Network is achieving stellar results by targeting its toughest challenges.

Advocating for Injured Workers: By helping employees navigate through the workers’ comp system, Cottage Health decreased lost work days by 80 percent.

A Matter of Trust: St. Luke’s workers’ comp program is built upon relationships and a commitment to care for those who care for patients.

Keeping the Results Flowing: R&I recognizes the Metropolitan Water Reclamation District of Greater Chicago for a commonsense approach that’s netting continuous improvement.

Michelle Kerr is associate editor of Risk & Insurance. 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.