Welcome to the WCTI Annual Meeting

Hilton Lisle/NapervilleFriday, May 9, 2014

• Alper Services, LLC

• Arthur J. Gallagher Risk Management Services, Inc.

• Assurance Agency, Ltd.

• Byrne, Byrne & Company

• Dansig Incorporated

• Davis Insurance Group – Division of Crum Halstead

Agency, Inc.

• Hallberg Commercial

• Horton Group

• HSHC, Inc.

• Hub International Midwest Limited

• Insurance Solutions Network, LLC

• Lamb, Little & Company

• Market Financial Group

Thank You To Our Agents!• Maconachy Stradley Insurance Agency, Inc.

• Meeker-Magner Company

• Mesirow Insurance Services, Inc.

• Myers-Briggs & Co., Inc.

• ONB Insurance Group

• Risk Strategies Company

• Roland J. Fischer & Associates, Inc.

• Rosenthal Brothers, Inc.

• Snyder & Snyder Agency, Inc.

• The Daniel and Henry Co.

• The Hays Group, Inc.

• The Plexus Group, LLC

• USI Midwest

• Wells Fargo Insurance Services USA, Inc.

• Willis of Illinois, Inc.

WCTI Board of Trustees• The Board is comprised of 11 Trustees who

serve Member companies.• The Trustees are executives of Member

companies with responsibility for defining and making policies and have fiscal responsibility at their company.

Trustees – Claims Committee• Sue Meyer, Rockford Spring Company• Karen Guzan, Midco• Phil Kretekos, Metal Impact• Brad Irle, TH Synder

Trustees – Loss Control Committee• Bryan Webster, Webster-Hoff Corporation• Tom Simeone, Manor Tool & Manufacturing• Kevin Dunne, Flexco• Joe Dwyer, Eklind Tool

Trustees – Finance Committee• Scott Szafasz, Bimba Manufacturing Co.• Joe Kulisek, United Displaycraft• Daryl Dishong, The Intec Group

WCTI Board of Trustees• There is a current Board opening

– If interested, please see a WCTI Board member today or contact Gina Reynolds at greynolds@ccmsi.com.

CCMSI Service Team• Gina Reynolds – Account Manager• Carol Gleason – Claims• Marianne Cornacchione – Claims• Stacey Dahm – Claims• Michelle Hoerdemann – Claims• Ryan Brown – Loss Control• Diane Rigsbee – Loss Control• Meredith Wayant – Loss Control• Bill Katon – Loss Control• Bob Wasick – Loss Control• Vickie Drollinger – Underwriter• Tiffany McNeely – Accountant• Angie Blakeney – Sales• John Kluth – Senior Account Advisor

In Your Folders• Sponsor Information

– Turn in a signed sponsor card for the chance to win a Visa Gift Card

• Member Bios• Testimonial Request• Referral Form• Annual Meeting Survey• 2014 Loss Control Manual information

Today’s Schedule

• Breakout sessions at 10:00 and 11:00

• Awards at 11:50

• Lunch at 12:00

Breakout Sessions1. Adjustment Bills

2. Weapons and Weed

3. Ask the Loss Control Expert

4. Work Comp Trial Decisions

www.wcti.info• Claims, Loss Control and Policy Documents• Calendar of Events• Scoreboard• Membership Contact List• Safety Tip of the Month• Power Point Presentations for the Task Force

and Train the Trainer Sessions

Chairman’s Report

Bryan WebsterWebster-Hoff Corporation

Chairman’s Report

• Mission Statement• Why WCTI !!• New Membership Process• WCTI Today

Mission StatementThe Workers’ Compensation Trust of Illinois is a group of safety focused Illinois Manufacturers that have pooled their excellent loss experience to self-insure their workers’ compensation risk.

Members are committed to managing progressive safety programs and are actively involved in the fair and expedient management of claims.

All members share the philosophy that their employees are their greatest asset and that a safe workplace is their highest priority.

Why WCTI !!• Allows smaller companies to reap the cost savings of insuring workers’

compensation by spreading the risks over a large number of companies. • Provides lower premium costs along with a possible return of premium

dollars and interest income.• Allows members to gain control over their claims and to take advantage of

result driven, industry-specific loss control services. • Provides networking and training opportunities through the Annual

Meeting, Train the Trainer and Task Force meetings and OSHA 10 hour training.

• The goal is to find like minded companies who care a great deal about the safety of their employees and want to be as cost efficient as possible.

Strength and Success of WCTI

Members

Trustees

CCMSI

New Membership Process

Eligibility Requirements– Manufacturing and related industries– Illinois employees only– Minimum premium requirement is $30,000 in Standard

Premium– Group health insurance coverage required– Eligible prospects must meet the following three year Trended

Expected Loss Ratio (TEL):• $30,000 to $50,000 in Standard Premium, TEL less than 40%• $51,000 to $100,000 in Standard Premium, TEL less than 45%• Over $100,000 in Standard Premium, TEL less than 50%

New Membership ProcessMember Requirements

– Management must indicate a strong interest in working with claims and loss prevention

– Participation in the Member Safety Audit Program (MSAP)– Participation in all scheduled loss control visits– Maintenance of a positive management safety commitment– Reporting of claims to CCMSI, preferably within 24 hours, but at the latest

within five days– Post accident and pre-employment drug and alcohol testing– Commitment to transitional employment for injured workers– Demonstration of a foundation of sound business practices– Must be willing to provide a bank reference that would communicate credit

worthiness– Payment of WCTI invoices in a timely fashion– Member agrees to submit all losses to CCMSI for payment. No in house

payment of work related medical bills.

New Membership Process• WCTI evaluates new Members against a list of the following:

– Desired types of manufacturing– Undesired types of manufacturing– Undesired exposures– Acceptable exposures with limited or minimal exposure– Common class codes found within WCTI

• If the prospective member fits the profile, what happens next?– Underwriting approval– Excess carrier approval– CCMSI Account Manager approval– Pre-inspection approval (CCMSI Loss Control Representative)– WCTI Loss Control Committee approval– WCTI Board of Trustees approval

New Membership Process – 2013 Results

• 129 Prospects Were Reviewed• 81 prospects Were Declined• 48 Met WCTI’s Qualifications • 23 Companies Joined WCTI

– New Standard Premium of $2,410,044

Example - Met Criteria But Declined

• Machine Shop• Premium $48,000• Experience Mod .83• Loss Ratio 0%

Declined by the Loss Control Representative because of the lack of the necessary elements that are expected for a WCTI safety program and due to the condition of the building and the location of the prospect.

2010 2011 2012 2013 20140

20

40

60

80

100

120

140

101 99108

128 131

WCTI Today – Membership

3.8

4.1

4.5

4.2

3.8

3.4

3.6

3.8

4.0

4.2

4.4

4.6

2009 2010 2011 2012 2013

WCTI Today – Incident Rate(Per 100 Employees)

$11,

587,

640

$12,

508,

581

$13,

540,

385

$15,

378,

100

$16,

500,

081

$0$2,000,000

$4,000,000$6,000,000$8,000,000

$10,000,000$12,000,000$14,000,000$16,000,000$18,000,000

2010 2011 2012 2013 2014

WCTI Today – Standard Premium

* 2013 and 2014 Estimated

30%

49%

44%

41%

48%

0%5%

10%15%20%25%30%35%40%45%50%

2009 2010 2011 2012 2013

WCTI Today – Loss Ratio as of 3/31/14 with IBNR

$1,0

20,8

94

$1,0

74,4

55

$1,0

65,1

99 $1,1

19,5

89

$1,1

67,1

12

$900,000

$950,000

$1,000,000

$1,050,000

$1,100,000

$1,150,000

$1,200,000

2009 2010 2011 2012 2013

WCTI Today – History of Surplus (GAAP)

Loss Control Report

Tom SimeoneManor Tool & Manufacturing

Loss Control Report

• 2013 Year In Review• Focus Areas For 2014• Loss Control Committee• Improved Training Resources

2013 Year In ReviewMSAP• The MSAP targets top claim categories and common manufacturing OSHA

citations. • MSAP works closely with ISO, Kaizen, Kanban.• 61 companies scored greater than 90 in 2013.• 54 employees received their OSHA 10 hour card, free of charge• 39 companies will receive a No Lost Time Award today• 20 companies will receive the Award for Safety Excellence today• Seven Train the Trainer Sessions• Seven Task Force meetings• Five Mini Training Sessions (via phone)• Quarterly visits made to all members• Monthly visits made to new members for first quarter of membership

2013 Top Causes of Injury/Total Incurred

• Ergonomics Plant- 44%• Tooling or Equipment- 28%• Machine Guarding- 5%

2009 to 2013 Top Cause of Injury/Total Incurred

• Ergonomics Plant – 40%

-All members have received a visit from our ergonomic specialist

Focus Areas For 2014

• Ergonomics• Machine Guarding• Low Shared Claims• Encourage use of Member Resources• New Employee Orientation and Training

Loss Control Committee• In 2014, the Loss Control Committee will continue to meet with

officers of member companies if the following triggers are met: – Loss ratio of 100% or greater and a cumulative loss ratio of 39% of more– LOTO incident– Machine guarding incident or an amputation with a total incurred greater than

$10,000– MSAP score of 55% or less at year end– No response to a Notice of Continued Excessive Loss Letter.

• New to 2014– If a member satisfies three triggers in twelve months, they will be placed on

Member Probation– If a Member does not attend a meeting when the invitation is extended and

declines two subsequent invitations, they will be placed on Member Probation

Improved Training Resources

• Partnership with Summit Training – Now Available– Added 31 new training courses– Prior courses still available– Many are available in Spanish

Joining Us Today

Josh George, IntelliWheels, Inc.

Member Awards

Gina Reynolds

If you haven’t done so already …

• Complete the WCTI Annual Meeting Survey

The WCTI Board of Trustees would like to recognize the following companies for their

years of membership in the Trust.

•EXACT PACKAGING 5 Years•GENESIS AUTOMATION5 Years•MECH-TRONICS, LIMITED PARTNERSHIP 5

Years•SKYLINE DESIGN, INC. 5

Years

•INTERNATIONAL SUPPLY CO. 10 Years•LAVEZZI PRECISION, INC. 10

Years•PRIMROSE CANDY CO., INC 10

Years•STOCKER HINGE 10

Years•THERMOFLEX CORPORATION 10

Years

•CHEMRING ENERGETIC DEVICES, INC. 20 Years•FOREST PACKAGING CORPORATION20 Years•GRANITE CITY PICKLING & WAREHOUSE, INC. 20

Years•KAY MANUFACTURING CO. 20

Years•STURTEVANT RICHMONT, DIV. OF RYESON CORP. 20

Years

•AMSTEK METAL, LLC 25 Years•ROESCH, INC. 25

Years

• SAVAGE BROTHERS COMPANY 30 Years

No Lost Time Accidents Safety Award:• In recognition for maintaining a safe and

healthy work environment and achieving no lost time accidents in 2013

No Lost Time Awards:• Amstek Metal LLC• Anthony Liftgates, Inc.• Ballco Manufacturing Company• Brave Products, Inc.• C&L Supreme• Chase Products Company• Chemring Energetic Devices, Inc.• CLL Engineering• Corrugated Supplies Company, LLC• Flexco• Flexco Engineered Systems Group• Hudson Precision Products Company• Kastalon, Inc.• Kiene Diesel• Lewis Machine & Tool Co.• LMT Onsrud• Manor Tool & Manufacturing Company• Meaden Precision• Mech-Tronics, Limited Partnership• Metal Impact, LLC

No Lost Time Awards:• Mushro Machine & Tool Company• The Pate Company• Phoenix Closures• Phoenix Electric• Precision Tooling Group• Qualitek Manufacturing Inc.• Scot Electrical Products• Scientific Metal Treating• Service Industries, LLC• Skyline Design, Inc.• Spartanics• Stocker Hinges• Tech-Max Machine, Inc.• Technical Metals Inc.• Tella Tool & Mfg. Co.• The Intec Group, Inc.• Unity Manufacturing• Valley Fastener Group, LLC• Vogel Tool & Die, LLC

Award for Safety Excellence:• In recognition for management of an

outstanding safety program, achieving a loss ratio of less than 10% and a MSAP score of 90% or greater in 2013

Award for Safety Excellence:• ATK Foods• Ballco Manufacturing Company• Batavia Container Inc.• Chemring Energetic Devices, Inc.• Coral Chemical• David Architectural Metals, Inc.• Flexco• Kastalon, Inc.• Lewis Machine & Tool Co.• LMT Onsrud • Manor Tool & Mfg. Company• Mech-Tronics, Limited Partnership• Metal Impact LLC• Midco, Inc.• Phoenix Closures, Inc.• Skyline Design, Inc.• Sterling Multi Products• Tech-Max Machine, Inc.• The Intec Group• Valley Fastener Group, LLC

Exceeding Safety Excellence:

• In recognition of exceeding expectations for management of an outstanding safety program. WCTI recognizes your for your commitment to promoting a safe and healthy work environment.

David Architectural Metals, Inc.

Exceeding Safety Excellence

Chairman’s Award for Safety:• In recognition of exceptional safety

performance in 2013. WCTI recognizes your long-term safety commitment to promoting and providing a safe and healthy work environment.

LMT Onsrud

Chairman’s Award

Thank You For Attending The

WCTI Annual Meeting

Hilton Lisle/NapervilleFriday, May 9, 2014