|June 8, 2012|
Previously published on June 4, 2012
The Florida Workers' Compensation Joint Underwriting Association ("FWCJUA") Operations Committee ("Committee") met May 30, 2012, during which it heard a summary of highlights from the 2011 Operations Report and confirmed modifications to the Disaster Recovery and Emergency Preparedness Plan.
The 2011 Operations Report was compiled by Travelers Insurance ("Travelers") in order to provide an in-depth operational review of the FWCJUA's 2011 book of business, it was noted. The purpose of the report was to flag changes in the book of business from previous years, cite trends, and make recommendations to enhance standards and improve overall performance to benefit policyholders.
Highlights of the report follow:
- Total policy count increased by 19.7 percent, from 810 policies in 2010 to 970 policies in 2011
- Total policy premium increased by 79.5 percent, from $5.9 million in 2010 to $10.6 million in 2011
- Tier 1 average policy premium increased by 41.3 percent, from $3,730 in 2010 to $4,295 in 2011
- Tier 3 average policy premium increased by 55.7 percent, from $15,749 in 2010 to $24,519 in 2011
- Total incurred claim amount increased by 155 percent, from $1.8 million in 2010 to $4.7 million in 2011
- Percent of loss in the service industry increased by 355 percent, from 18 percent in 2010 to 82 percent in 2011
The 2011 Operations Report included the following enhancements and recommendations for 2012:
Adding a communication regarding the verification of subcontractor coverage or exemption status to policy packets for new and renewal business. The information will become part of the standard policy package sent to new and renewal policyholders by July 15, 2012.
Creating a communication to all FWCJUA policyholders regarding the handling of out-of-state contractors. The information will eventually be included in the standard policy packages sent to new and renewal policyholders.
Adding Travelers' business unit phone numbers to the FWCJUA website. Contact information for audit, claims, risk control, and underwriting has been added to the FWCJUA's website.
Scheduling quarterly meetings between Travelers and the FWCJUA to discuss common issues relevant to the management of the FWCJUA's book of business. The first meeting is scheduled for June 26, 2012.
The Committee then approved several technical modifications to the Disaster Recovery and Emergency Preparedness Plan, including the updating of several appendices.
FWCJUA staff conducted a disaster recovery drill on May 9, 2012, to cover procedures for dismantling workstation equipment and generally preparing facilities for a hurricane, it was noted. The drill was successful and execution went smoothly and quicker than the last drill.
Committee members also received a detailed timeline of all operational objectives that have been addressed from March 2012 to present.
In other business, FWCJUA Executive Director Laura Torrence advised Committee members that an out-of-budget capital expenditure of $5,600 was spent to replace the primary battery backup supply for the network equipment, servers and phone system. Committee members confirmed the expenditure but were not required to approve it.
With no further business before the Committee, the meeting was adjourned.