Risk Management and Insurance Brokerage Services

COMPLEX CASUALTY CAPABILITIES

ZOOM® is Beecher Carlson’s patent pending business process that combines the science of

predictive analytics and data mining with hands-on claims consulting and loss control / engineering

expertise for your workers’ compensation risk. Risk management and claims professionals are often

plagued with reports, analytics, data sets, loss runs and actuarial reports from multiple sources.

ZOOM® cuts through the clutter and provides focused actions that will result in reducing your loss

costs every year.

ZOOM® IN ON YOUR LARGEST COST OF RISK

Our ZOOM® process utilizes customized data analysis to generate strategies that are specifically

designed to reduce loss costs. Central to our approach is a deep measurement and analysis of

your business. The result is evidence-based information used to drive decision making and help

you understand the causes and costs of risk within your program. This knowledge helps us

collaborate on executing deliberate action plans involving early identification, management of

high risk claims and process improvements to further reduce your cost of claims.

PROCESS SOLUTIONS

JOINT STEERING COMMITTEE AND STEWARDSHIP / ACCOUNTABILITY

STRATEGIC CLAIM FILE MANAGEMENT

HISTORICAL CLAIMS

CURRENT CLAIMS

PROSPECTIVE CLAIMS CLAIMS / PREDICTIVE MODELS

CAUSE & EFFECT / ROOT CAUSE

SCORECARDS & GOAL TRACKING

SOLU

TIO

NSO

LUTI

ON

SOLU

TIO

N

LOSS DATA ANALYTICAL TOOLS SOLIUTIONS

ZOOM® PROCESS

ZOOM® CLIENT RESULTS

 Insurers will accelerate a reduction

in collateral for ZOOM® clients

 Insurers will lower deductible /

excess workers’ compensation

premiums for ZOOM® clients

 With ZOOM® analytics, we present

a stronger marketing submission

uxv

w14% Average

Reduction on

Projected Ultimate

29% Average

Reduction on

Reserve Liabilities

31% Average

Reduction on

Existing Collateral

Mitigated Clients

Claim Cost by

$215,041,280

INNOVATIVE COMPANIES DON’T LOOK FOR TRENDS. THEY CREATE THEM.

SAMPLE SCORECARD SEVERITY TREND BASELINE

LITIGATION ASSESSMENTS

ZOOM® CLIENT DELIVERABLES

ZOOM® CASE STUDY #1

1%

6%

12%

16%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

PY 2010 PY 2011 PY 2012 PY 2013

Financial Savings % of Savings

$14.26M IN ULTIMATE REDUCTIONS

KEY SOLUTIONS IMPLEMENTED

• Enhanced Claim Review Strategy• Predictive Modeling• Claim Selection Process for Staff

• California• Unbundle/custom MPN in CA• CA PBM Enhancement

• Litigation Avoidance and Management• NCM Assessment• Subrogation Recovery

I N I T I A L A S S E S S M E N T &

O P P O R T U N I T Y

T A R G E T S

I N I T I A LT E R M

R E S U L T S

R E T U R N O N I N V E S T M E N T

Increasing year-over-year loss rate; double digit year-over-year growth in average cost per claim; ongoing development of older claims / long tail

1. Reduce existing and projected loss rate 2. Reduce development by at least 10% over previous 12 months while increasing

the indemnity claim closure rates

Three-Year Engagement: Establish development and closure targets each year

Exceeded target by approximately $10M while closing out 130 more claims than projected (more than 50% of claims closed in first 12 months)

$14.85 to $1

ZOOM® CASE STUDY #2

11%

1%

8%

1%

0%

2%

4%

6%

8%

10%

12%

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

PY 2010 PY 2011 PY 2012 PY 2013

Financial Savings % of Savings

$16.91M IN ULTIMATE REDUCTIONS

KEY SOLUTIONS IMPLEMENTED

• Predictive Models/High Risk Claims Management Process

• TPA Closure Performance

• Stay at Work Program Rollout/Training

• Early Intervention Strategy

• Allocation

• Joint Steering Committee

I N I T I A L A S S E S S M E N T &

O P P O R T U N I T Y

T A R G E T S

I N I T I A LT E R M

R E S U L T S

R E T U R N O N I N V E S T M E N T

Double digit year over year growth in average cost per claim

1. Reduce existing and projected year-over-year average cost per claim trends by 6% 2. Close out historical claims below existing reserves

Two-Year Engagement

Improved year-over-year average cost per claim trends on average by 67.5%. Approximately $17M reduction in ultimate loss projections post ZOOM®

engagement. Indemnity claims as a rate of exposure down 31% in most recent year.

$11.87 to $1

ZOOM® CASE STUDY #3

59%

40%

99%

37%

0%

20%

40%

60%

80%

100%

120%

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

PY 2010 PY 2011 PY 2012 PY 2013

Financial Savings % of Savings

$17.1M IN ULTIMATE REDUCTIONS

KEY SOLUTIONS IMPLEMENTED

• Monthly Steering Committee Calls and Scorecards

• Predictive Models to Identify Surgery Risk

• Setup Onsite Nurse Case Management

• Customized Medical Panels Based on Disability Duration

• Dedicated Closure Team

I N I T I A L A S S E S S M E N T &

O P P O R T U N I T Y

T A R G E T S

I N I T I A LT E R M

R E S U L T S

R E T U R N O N I N V E S T M E N T

One in five claims indemnity or lost time (20%+); high rate of lost work days; stagnate loss rate

1. Reduce lost work day claims percentage and lost work days 2. Reduce ultimate loss projections

Three-Year Engagement

Reduced lost work days by 55% following first 18 months; indemnity claims percentage reduced 35% to 50%; outperformed projected ultimate losses eight consecutive years

$14.55 to $1

COMPLEX CASUALTY CAPABILITIES

800.657.0243 beechercarlson.com

O OZ M