As climate-related disasters grow more frequent and severe, they bring with them mounting financial and operational challenges. From businesses to community organizations, many are finding that traditional recovery mechanisms, whether government aid or conventional insurance, are often too slow, restrictive, or unreliable to meet their immediate post-disaster needs.

In this landscape of uncertainty, parametric insurance offers a compelling alternative: rapid, reliable funding with the freedom to use it where it matters most.

Fast, Objective Payouts—No Waiting Required

Traditional insurance typically requires physical damage assessments and can take months or years to settle. It also tends to exclude non-damage business interruption (NDBI) events—like supply chain disruption, forced closures, or infrastructure outages—which often carry just as much financial weight as physical damage.

Parametric insurance takes a different approach. Instead of relying on subjective assessments, it triggers payouts automatically when predefined conditions are met—such as a specific wind speed, flood depth, or the proximity of a hurricane to a location. Because the criteria are objective and based on third-party data, payouts can be made in days rather than months.

Freedom to Use Funds Where They’re Needed Most

One of parametric insurance’s most valuable features is that payouts are not tied to specific assets or expenses. Once the trigger is met, the funds are released and eligible for any recovery associated with the event, from physical loss to economic loss. This enables policyholders to prioritize their recovery based on real-time needs.

For example, an organization affected by hurricane-related flooding might use the funds to:

• Set up emergency shelters or aid stations
• Remove debris and restore site access
• Provide temporary housing or relocation support for staff
• Offer recovery grants to small businesses or vulnerable residents
• Invest in resilience upgrades like flood barriers or backup power systems

This flexibility means the recovery process doesn’t stall while waiting for inspections or paperwork—nor is it limited to rebuilding specific structures.

Supporting Business Continuity and Long-Term Resilience

When disaster strikes, having immediate liquidity can make the difference between a temporary disruption and a prolonged crisis. Businesses can use parametric payouts to maintain payroll, secure temporary facilities, or even retain customers by resuming operations faster than competitors.

Beyond short-term survival, parametric coverage also enables forward-looking recovery. Communities and companies alike can reinvest the funds into hardening their infrastructure, improving risk mitigation strategies, or bolstering preparedness for future events.

Imagine a homeowners’ association hit by a hurricane. Traditional insurance might take months to process structural claims, while a parametric policy could deliver funding within days. That means the HOA can act immediately—clearing roads, restoring basic services, and helping displaced residents without delay.

The Bottom Line

As the gap widens between growing disaster risk and the speed of traditional recovery tools, parametric insurance stands out for its speed, transparency, and unmatched flexibility. It doesn’t just offer a safety net, it offers a smarter, faster, and more empowering way to recover and rebuild.

In an era where time, flexibility, and resilience are everything, parametric coverage delivers exactly what today’s organizations need to thrive after disaster.

As a student majoring in Environmental Studies with a minor in Risk Management, attending the 2025 PRIMA Conference provided invaluable insights into how theories taught in the classroom translate into real-world applications, especially in the realms of emerging technologies, environmental hazards, and enterprise risk management.

Firstly, Peter Simonsen’s session on “Managing AI Risk for Public Entities” revealed how artificial intelligence is reshaping risk landscapes for government organizations. The analogy that “data is the oil of the 21st century” perfectly encapsulates the importance of proper resource extraction and sustainable management. For example, learning about AI applications, such as Arizona Supreme Court’s AI reporter, Colorado wildfire detection systems, or New Orleans’ facial recognition technology demonstrated how technology can enhance public service delivery while introducing new vulnerabilities such as data privacy concerns and biased modeling.

However, these issues can be addressed through data cleaning, not over-relying on technology, and regularly educating yourself about AI practices and regulatory guidelines. As Peter aptly puts, “AI isn’t coming for your job; someone who knows how to use AI is coming for your job.”

Overall, this session underscored the importance of developing technological literacy alongside traditional risk assessment skills.

As an Environmental Studies student, Cameron Douglass’s presentation on PFAS (Per- and Polyfluoroalkyl Substances) risks was a fascinating case study in environmental contamination management, especially considering the scope of the problem: 98% of human bodies have detectable PFAS concentrations, and 45% of U.S. drinking water systems contain it.

The regulatory framework discussion, which covered CERCLA designation, drinking water standards, and Superfund liability, highlighted how environmental science intersects with legal and financial risk management. The $20 million pilot ion exchange system in Southern California exemplified the substantial costs associated with environmental remediation, a reality that reinforces the value of proactive risk management strategies in addressing PFAS in our communities sooner, rather than later.

The ERM Roundtable with Shannon Gunderman and Lisanne Sison emphasized how effective risk management requires both quantitative analysis and cultural integration. For example, the concept of “scope creep,” or avoiding projects that don’t address identified risks, offered a valuable framework for prioritizing resources. More importantly, the discussion of using quantitative data points to convince C-suite executives while employing qualitative approaches to gradually influence organizational culture provided practical insights into implementation challenges I had not considered in class.  

PRIMA’s 2025 Annual Conference highlighted that effective risk management increasingly requires professionals who can navigate highly complex and regularly evolving systems. As I continue my studies, I believe that the intersection of environmental science and risk management will be crucial for addressing 21st-century challenges such as climate adaptation to emerging technology governance, both in public and private sector risk management.

Attending the PRIMA 2025 Annual Conference in Seattle was an unforgettable and eye-opening experience. It was my first time in the city, and I couldn’t have imagined a better reason to be there. As a Student Scholar, I had been both excited and curious, eager to learn, but not quite sure what to expect. What I found was so much more than I anticipated.

I had applied for the scholarship after taking a Human Resources class that encouraged me to think more deeply about how organizations really function. Although I am a Management Information Systems (MIS) major and work in Human Resources, I began to realize the importance of understanding the people side of every system. PRIMA gave me a chance to see how all of this fit together - how risk management wasn’t just about policies or numbers, but about people, communities, and making meaningful decisions that protect them.

One of the sessions that truly stayed with me was Hoan Do’s “The Real Problem Isn’t Stress—It’s How We Handle It.” His talk was inspiring and refreshingly honest. He introduced the PMS Framework that is Physical, Mental, and Spiritual health, and explained how stress, when understood and managed well, could actually become a strength. As someone who was constantly juggling school, work, and life, his message reminded me to slow down, take care of myself, and view stress as something to learn from, not simply endure.

Another session that touched me deeply was Lauren Sisler’s keynote. Her story of personal loss and how she found strength through vulnerability moved me and many others to tears.

She reminded us that every person has a story, and that embracing your own could help others find the courage to share theirs. Her phrase “Fall in love with your story” struck a chord with me. It made me reflect on my own journey and realize how important it was to honor it.

I also gained valuable insights from Jacqui Heidelberger’s session on generational differences in the workplace. She shared how various age groups bring unique perspectives and how Gen Z—my generation was shaping the future with a strong focus on purpose, inclusivity, and collaboration. I left the session feeling proud and more confident about my role in the evolving workforce.

In addition to the sessions, the conference featured a wide range of booths from different companies and public entities. Speaking with representatives at these booths gave me a deeper understanding of the diverse roles, challenges, and innovations within the field of risk management. These conversations helped connect the dots between classroom learning, conference sessions, and real-world application.

Beyond the educational aspects, what truly made this experience special were the people. The other student scholars and I had met as strangers, but by the end of the event, we were sharing stories, laughs, and encouragement. That sense of community and support made the entire experience even more meaningful.

I remain incredibly thankful to Gallagher for sponsoring the Student Scholar Program and to the dedicated mentors who guided us so generously throughout the conference. This opportunity gave me a real glimpse into what risk management looks like in practice and it reminded me of why I want to pursue a career that blends purpose with impact. I left Seattle with new knowledge, lasting friendships, and a renewed sense of direction.

It’s truly commendable that PRIMA offers this scholarship opportunity to students. We are both the present and future of the profession and giving us a glimpse into how this field works is not only inspiring—it’s a crucial step in building the next generation of leaders in risk management.

I had an incredible opportunity to attend the Public Risk Management Conference Association (PRIMA) Conference in Seattle, representing my university as a student scholar. Attending a national conference as a student who loves to meet new people has been such a wonderful experience. As a student attending my first Risk Management conference, I expected to learn about public safety and Insurance strategies.

One of the breakout room sessions I had attended stood out to me the most was on generations in this AI society. Also another breakout room that had also stood out to me was AI governance in local government. These two sessions combined had questioned me. In many ways, How has AI affected today's generations? Yet transparency is always lacking.

As a student, I’ve always viewed AI as a powerful, and fascinating tool. It truly has transformed so much already in many generations like baby boomers, gen X, millennials, and gen Z. Learning about different generations during the breakout session had taught me so much in depth of AI. But hearing risks professionals talk about bias in such criminal systems, predictive policy algorithms. Overall hearing from professionals made me realize the word fear connected with AI has a lot to do with it and how serious risks are. Studies have also shown AI tools have been replicated and affecting society in a non-appropriate way.

What struck me was that there were so many young professionals in the room that were also risk managers and government officials. As students us innovators, leaders, and young professionals, we will inherit the solutions and risks. As someone who relies on digital media, I haven’t realized how easily the truth can be changed and manipulated. There isn’t just technical risk but there is also societal risk. It’s crazy to say how AI will change the environment in how we shape, live, and learn. We are in a generation where we carry AI in our pockets like an everyday essential. We are in a risk of public risks, policies, and ethics where it's more tech-savvy now and advanced.

Personally, I have been so inspired by many young professionals in all the rooms like risk managers, lawyers, and local government leaders. All of these professionals have some kind of part in critical thinking in many complex issues. The line between fiction and fact is getting more difficult to see, there's not only technical risks but both technical and societal risks.

I left the PRIMA conference not only feeling more curious but also very passionate about this field. It showed every sense of purpose, and taught me responsibility. In the future I want to work in the consulting aspect of management information systems and risk, but also from there be a corporate or malpractice lawyer. I want to make sure my generation doesn’t inherit the issues caused by technical issues. AI will continue to change, adapt, and learn but will be used properly in respectable stances.

Thank you to PRIMA for this amazing opportunity!

Attending the 2025 Public Risk Management Association (PRIMA) Annual Conference as a Student Scholar was nothing short of transformative. From the moment I arrived, I was immersed in an environment dedicated to public service, leadership, and innovative risk management. It was more than a professional development opportunity—it was an invitation to think bigger, lead with purpose, and discover the power of community in the world of public risk.

As a student scholar, I had the unique privilege of engaging with industry leaders, public sector professionals, and fellow emerging talent from across the country. PRIMA did an exceptional job of creating a learning space where new perspectives were encouraged, practical skills were emphasized, and inspiration was never in short supply. Whether it was through breakout sessions, panel discussions, or networking opportunities, I consistently found myself challenged to grow not only as a student of risk management but as a future leader in public service.

One of the defining moments of the conference was hearing keynote speaker Lauren Sisler share her remarkable story. Her journey of resilience following the loss of both her parents to opioid addiction is a story of tragedy, but even more so, one of triumph. Lauren’s message to “embrace the shatterproof mindset” was a powerful call to action for everyone in the room. She reminded us that even in our most vulnerable moments, we have the capacity to lead with courage and authenticity.

Lauren’s keynote was not just a personal narrative—it was a roadmap for transformation. She encouraged us to unlock our full potential by leaning into our stories, no matter how broken or challenging they may seem. In doing so, we can find strength, purpose, and connection. As someone just beginning their professional journey, I found this message especially resonant. It reframed my understanding of leadership—not as perfection, but as perseverance.

Throughout the conference, I was reminded again and again that risk management isn’t just about preventing loss, it’s about building resilient communities. The sessions covered topics ranging from cyber threats and natural disaster preparedness to workplace safety and mental health in the public sector. Each speaker brought valuable insights, and I walked away with a deeper appreciation for the complexities and responsibilities that come with managing public risk.

Most importantly, I left PRIMA 2025 with a sense of belonging. Being a student scholar meant that I was not only welcomed into the risk management community but also empowered to contribute meaningfully to its future. The mentorship, resources, and encouragement I received have left a lasting impression, one that will continue to guide me as I pursue a career in the public sector.

In the words of Lauren Sisler, we each have the ability to lead with purpose. By embracing our stories and connecting with others, we unlock the limitless possibilities ahead. PRIMA 2025 was a celebration of exactly that—and I’m grateful to have been part of it.

Artificial intelligence (AI) and data analytics are swiftly revolutionizing law enforcement in identifying trends, preventing incidents, and responding more effectively. Predictive policing is a key application, analyzing historical crime data alongside real-time information such as 911 calls, traffic data, and social media activity to anticipate potential hotspots. This approach allows law enforcement to strategically position their officers where they are needed most, improving efficiency and reducing response times.

In fact, from a public risk management perspective, this is a game changer. By allocating resources more strategically, we can reduce violence, minimize public disturbances, and prevent property damage, directly impacting the financial health of cities, counties, and insurers. AI can foster more objective decision-making and help law enforcement reduce human bias when used ethically and transparently.

Let us now talk about real-time surveillance and automated surveillance.

AI-powered surveillance systems represent another significant advancement. These systems include facial recognition, license plate readers, body cameras with automatic incident detection, and citywide camera networks. With these tools, police departments can:

• Identify suspects in real-time
• Locate stolen vehicles or persons of interest
• Monitor crowds at protests or public events
• Receive automatic alerts of suspicious activity

These technologies contribute to crime prevention and rapid emergency response, creating a digital record that increases transparency and accountability. This allows for better documentation of incidents and provides insurers with a better defense against exaggerated or false claims. Protecting privacy and community monitoring can strengthen trust in law enforcement.

Risk-Based Resource Management

AI is not just a tool for emergency response; it also improves future planning for police departments. With increasingly frequent budget cuts and staff shortages in many areas, AI helps police departments make smarter, risk-based decisions. By analyzing factors such as time of day, location, community characteristics, and seasons, police departments can better dispatch patrols, adjust work schedules, and improve community engagement. This data-driven approach improves public risk management and increases department efficiency while controlling costs. As a result, insurers can begin developing coverage options that reward innovative technologies, proactive risk management, and better documentation practices.

The Ethical and Legal Dilemma

However, the rise of AI is not without its challenges. It can exacerbate existing inequalities, undermine privacy, and even cause harm if misused. Predictive models that rely on biased historical data could reinforce systemic injustices. Surveillance tools could be misused without adequate oversight. Furthermore, identifying those responsible when automated systems make mistakes can be challenging. Public risk managers must work closely with law enforcement to ensure that:

• Transparency of AI algorithms.
• Community involvement in the adoption of new technologies.
• Strict rules regarding data use and storage.
• Clear legal frameworks for oversight and accountability.

The success of AI depends on the quality of the data it uses and the intentions behind its application. Risk professionals must anticipate how AI can solve problems and recognize how, if misused, it could create new ones.

A Call to the Public and Risk Community

So, what role should we all play in shaping this future?

As public risk, insurance, and governance professionals, we must consider whether we can manage the legal, reputational, and ethical risks associated with AI-driven policing. As community members, we should consider how to balance safety and privacy with innovation and accountability.

You are invited to take a moment to think about and discuss these important questions:

Should law enforcement rely on predictive analytics to prevent potential threats to the public?

What kind of community oversight is essential for ensuring that AI is used fairly and responsibly?

How can risk managers and insurers foster safe and transparent innovation in public safety?

While cyberattacks, natural disasters, and public health crises dominate traditional risk profiles, a more pressing, foundational threat often goes overlooked. Human Capital Management (HCM). As organizations grapple with talent shortages, digital disruption, and shifting employee expectations, workforce risks should no longer be viewed as a subset of HR. Rather, HCM should be positioned as one of the most critical problems facing organizations, and public entities as they try to create innovative solutions and strategies to manage related people issues such as work injuries, aging workforce, and absenteeism.

On a deeper scale, these issues extend far beyond Human Resources and apply to all enterprises as it should be treated as a direct intersection between risk and people. Boards and stakeholders are increasingly demanding greater visibility into how companies manage workforce-related risks. Therefore, poor talent management can easily become a source of organizational vulnerability and should be seen as a foundational problem for public risk management entities as they constantly need talent to support their risk management initiatives. People leaders across entities continue to face new workforce challenges and opportunities.

Consider a global pandemic, the surge of demand in remote work, and more emphasis placed on employee wellbeing. The main issue here is determining how and where to best allocate resources to internal programs within an organization to come up with more innovative solutions.

Human Capital Management difficulties stem from employee engagement based on reward systems, digital disruptions, and evolving employee values and perceptions. For instance, misalignment between what employers offer and what employees value can range differently in the categories of well-being, flexibility, or purpose. All of these are categories that correlate to attraction and retention.

Technology complicates things further as Artificial intelligence (AI) and automation are reshaping roles by changing the required skills and redefining how work gets done. Risk leaders who are not paying attention to how their roles and their employee’s roles are being transformed will soon find that they will struggle to fill skill gaps they were not previously keeping up with.

Once this issue is then attempted to be addressed, there will be a new wave of potential talent with different employee values ranging from salary, job expectations, benefits, and work-life balance.

Additionally, emphasis needs to be placed on identifying the value gap between a company's actual cost spent on retaining or recruiting employees and how much value they create for the organization. Even in times of crisis, the differentiator between companies that recover and those that falter often comes down to how they manage their talent. Visible leadership and a rapid, authentic response to crises outperform those that downplay risk or fail to act decisively. In every case, it’s about trust, and trust is built or broken by how companies treat their people. This can be measured by analyzing the gap between how much an organization spends on attracting and retaining talent versus the measurable value those employees deliver. However, this is not always a clear indicator of Human Capital Management success. A negative value gap for an organization (more resources allocated to employees compared to their actual value) does not necessarily mean that human capital management is being taken care of.

The bottom line is that the ability to recruit, engage, and retain top talent isn’t an HR problem, it’s a business continuity problem. In departments built to anticipate and respond to uncertainty, consistent use of talent strategy frameworks should be created and dedicated to tracking DE&I metrics, AI readiness of employees, and performance benchmarking corresponding to business goals. Companies are also using advanced analytics and location-based modeling to determine where talent can thrive in remote, hybrid, or in-office environments.

Ultimately, risk managers must now view talent not just as a workforce issue but as a critical asset and liability because, in a future defined by agility, trust, and transformation, the organizations that win won’t just have better models. They’ll have better people. While pay is a draw for potential talent, it is often challenging for the public sector to compete with private-sector offerings. This is why organizations should pay more attention to creating a positive value gap while cultivating a positive workplace that not only attracts top talent but inspires them to stay

Before attending PRIMA 2025, I couldn’t have told you what “risk management” really meant. I assumed it belonged in corporate boardrooms or insurance meetings, not something intertwined with my everyday decisions. I walked into the conference with curiosity. I walked out with clarity: risk management is not just a profession, it’s a mindset.

Hoan Do opened the conference with contagious energy and a session titled “Turn your Stress Into Success!” Sponsored by Travelers, this keynote redefined stress not as a burden, but as a compass. Hoan's simple tools, identifying daily stress triggers, changing your internal "playlist," and using pattern interruption—were more than motivational. They were tactical. Stress, he reminded us, is not the enemy; our reactions are. “The bigger the setback, the bigger the comeback,” he said, and somehow, it stuck.

His focus on applying self-care and reframing stress taught me that even our emotional regulation is a form of risk management. We’re constantly measuring threat, impact, and response—just without the spreadsheets.

The following morning, Lauren Sisler’s keynote “Shatterproof Leadership: Elevating Resilience and Purpose in the Workplace” delivered a powerful gut punch and a call to action. With transparency and compassion, she challenged us to embrace the shatterproof mindset: one that sees strength not in avoidance of adversity but in transformation through it.

Lauren’s message, again sponsored by Travelers, reinforced that leadership isn't about perfection, it’s about showing up with purpose. “We don’t define people by how they died, but how they lived,” she said, as she shared personal stories that brought vulnerability to the forefront. That moment made it clear: Risk management isn’t just about liability. It’s about people, their decisions, and the culture that shapes them.

Somewhere between the laughter during Hoan Do’s talk and the tears in Lauren Sisler’s, a realization settled in; I’ve been managing risk all along. Every time I create backup plans for my family, scan for emotional landmines in peer support sessions, or advocate for trauma-informed systems, I’m doing risk management. I just didn’t know it had a name.

The beauty of PRIMA wasn’t just in its data, demos, or devices. It was in the human-first approach that redefined what it means to lead safely, compassionately, and wisely. I now see that risk management is embedded in my advocacy, my recovery, and my resilience.

Two standout sessions deepened my understanding of risk management tools in action:

• Driving the Future: Telematics in Public Sector Fleets explored how GPS, speed tracking, and onboard diagnostics are improving fleet safety, accountability, and cost-effectiveness. Video data and performance metrics are now reshaping municipal policies.
• How AI and Data Analytics are Transforming Law Enforcement showed the power of predictive modeling in crime reduction and officer wellness. From computer-aided dispatch to early intervention systems, this session illustrated how data can drive both safety and equity.

Many students, myself included, were only able to attend because of generous sponsorship. Gallagher not only covered our conference registration but also treated us to dinner. Their support made this learning experience possible, and for that, I am deeply grateful.

Key Takeaways:

• Risk management is human-first. It’s not just policies and software—it’s how we adapt, support, and lead.
• Stress and leadership challenges are part of life. But with the right tools and mindset, they become opportunities.
• You don’t need a title to be a risk manager. If you’ve ever cared enough to plan, prevent, or protect—you’re already in the club.

Thank you, PRIMA 2025, for showing me that what I thought was chaos was actually strategy—just unnamed.

Let’s be real: managing certificates of insurance (COIs) in a public entity can feel like herding cats in a windstorm.

I’ve spent years in the trenches—reviewing COIs, chasing down vendors, and trying to stay ahead of expiring coverage before it turns into a liability for the county. And if there’s one thing I’ve learned, it’s this: COI compliance is rarely about the paperwork—it’s about the process. Or in many cases, the lack of one.

Why COI Chaos Is So Common in the Public Sector

Here’s what typically happens in cities, counties, and special districts across the country:

• Decentralized Contracting: One department signs a vendor agreement. Another holds the insurance documents. And a third is on the hook when something goes wrong.
• Inconsistent Requirements: There’s often no standard language for indemnity or insurance across contracts—leaving each project team to reinvent the wheel (or forget it altogether).
• Manual Tracking Tools: I’ve seen COIs tracked in Excel, Outlook folders, even post-it notes. When your “system” is a spreadsheet, things slip through the cracks—especially during staffing shortages or leadership transitions.
• Delayed Follow-Ups: With dozens (or hundreds) of vendors, following up on renewals manually is nearly impossible. One missed email can mean an uninsured contractor working on public property.
• Misunderstood Risk Profiles: Not every project needs the same level of coverage, but we often see boilerplate requirements that either underprotect or overreach—both of which carry consequences.

These gaps don’t just create administrative headaches. They leave public entities exposed. An expired COI may seem like a small issue—until an incident happens, and the agency finds itself footing the bill.

What Forward-Thinking Agencies Are Doing Differently

The good news? I’ve worked with public entities that have turned things around—and here’s what’s working:

1. Centralizing the COI Process

Instead of leaving risk management to individual departments, leading agencies are assigning COI compliance to a single point of accountability—whether that’s a person, a platform, or a dedicated risk unit. It eliminates silos and ensures nothing gets lost in the shuffle.

2. Using Technology Built for the Job

Modern COI tracking tools streamline the entire process—automating renewals, flagging non-compliant vendors, and ensuring records stay current. That means no more digging through inboxes or hoping you remember when coverage lapses. You get timely, proactive oversight without the scramble.

3. Standardizing Contract Language

Legal, procurement, and risk teams are finally working together to define clear, defensible indemnity and insurance clauses. Once that’s standardized, enforcing it becomes a whole lot easier.

4. Right-Sizing Coverage Requirements

Blanket insurance demands can deter smaller vendors and create unnecessary friction. Smart agencies are tailoring their requirements based on the actual risk of the engagement, striking a balance between protection and practicality.

5. Training Staff and Setting Expectations

You can’t fix COI chaos without buy-in. The most effective programs start with education—helping teams understand why COI compliance matters and the real risks of ignoring it. When people grasp the bigger picture, they’re far more likely to catch red flags before they turn into legal headaches.

It’s Not Just About Compliance—It’s About Confidence

At the end of the day, COI management isn’t about checking a box. It’s about knowing your agency is protected when things don’t go as planned. That peace of mind is worth a lot—and it starts with cleaning up the chaos.

If your agency is still relying on outdated tools or crossing fingers that coverage is valid, I promise you—you’re not alone. But you don’t have to stay there. With the right process, tools, and a little collaboration, COI compliance can be something you trust—not something you dread.

If you’re new to the risk management world, or part of a pool, you may not have heard the term EMOD; but, if your organization is self-insured, you probably have. Let’s start with the definition. Your organization’s EMOD is an experience modification rate comparing your organization to its peers and using a calculation of actual losses incurred over expected losses. What you really need to understand is how it impacts your workers’ compensation premium.

• “1” is considered “average.” The closer you are to “1,” the better off your organization is.
• Under “1,” even better.
• Waaay under “1,” you’re golden.
• Over “1,” you’ve got a problem that you should be paying attention to and putting a considerable amount of time and effort into resolving. This will take time. You didn’t get here overnight so you’re not going to bounce back overnight. But, changing the trajectory of your EMOD rate could literally save you thousands of dollars by giving you leverage and negotiating power.

Based on what I’ve just described, what can you determine from the chart below?

Correct! THIS. WAS. NOT. GOOD! What you should recognize is that this organization had never been under “1.” The best year this organization had was in 2017. Followed shortly thereafter with an all-time high in 2020. So, what does that mean for the bottom line? It means that in addition to “normal” market volatility and other factors taken into account by underwriters when procuring insurance policies, it is likely that the premium assessed during the peak year was 37% higher than another entity whose EMOD was sitting at “1.” Crazy, right? Let me say that again, 37% more than a peer for the same (or better) coverage.

So, what can the risk management team (work comp and/or safety) do about this?

1. KNOW YOUR CLAIMS. Even if you have a TPA, review your claims on a regular basis.
2. COUNT PROPERLY. That means, make sure you aren’t counting things you shouldn’t (e.g. incidents that aren’t work-related) and your employee and volunteer hours are correct.
3. CREATE POLICY. Specifically focused on reporting incidents. Make sure employees report everything immediately (and that means no later than the end of the shift).
4. INVESTIGATE. Investigate every single injury. You can learn a lot by asking the right questions of the right people.
5. DEVELOP A COMPREHENSIVE RTW PROGRAM. Don’t let an employee tell a doctor, “They don’t have light duty for me.” The employee may actually believe that, but if you have a program in place that actively seeks light duty assignments anywhere in the organization, especially now with remote or hybrid work opportunities, it’s even easier than it was 5-10 years ago. There is always work that needs to be done.
6. RESERVE ACCURATELY. Look at: life expectancy, rated age, claim development, all anticipated events.
7. Always consider full and final settlements.

It’s your story to tell, tell it well.