john-karlenSome good news – MTMIC’s last general rate increase was January 1, 2011 and with current loss trends we don’t see a need for one in the future (sorry my crystal ball has a forward looking limit of only one year).

Let me tell you more about our/your loss trends. Of course you would expect that we keep data by type of loss, classification of loss, by month, and year since we converted to MTMIC January 1, 2007 from the MTA Self- Insured Fund. That gives us over 7 ½ years of experience to rely upon. This data is used to direct Loss Control efforts, build claims research files, study underwriting issues as well as in financial/rate making tasks.

Here’s some loss frequency numbers from 1/1 – 7/31:

Medical Only:
2014 – 805
2013 – 969
2012 – 847

Time Loss:
2014 – 114
2013 – 120
2012 – 116

dollar-signWhat makes these numbers more impressive than just the raw data, is that we grew (exposure base) in 2013 and 2014. Growth in 2013 was 13.12% larger than 2012 and our estimate of growth in 2014 vs 2013 is 5.88%. The offset to this great news of reducing claims frequency is that the claims that do happen are costing more. There continues to be an upward trend on medical care costs and time loss.

We hope you find the monthly articles from the Loss Control and Claims Departments useful and hope the safety video library on our company website is beneficial to your organization. By the way, our 750 policyholders viewed our library of safety videos 3,235 times in the last year. I would like to thank our Loss Control Consultants in this effort and want you to know that our Claims people vigorously review every claim for compensability and then if compensable, every claim dollar is watched like it was their own.

Thank you for your Loss Control efforts, which are noticed and do effect rates. Now back to work, with safety goggles on, hearing protection, safety shoes, machine guards, proper lifting techniques …