For a change of pace, let me share an MTM project with you that I have been working on. And I will warn you that it includes some insurance geek. You buy insurance to provide financial reimbursement in case of loss. You do this to protect your building, your cars, your health, your life and in the case of MTM – your workers for workplace accidents. All of us do not want large financial surprises if one of these loss events occurs. Like us, insurance companies buy insurance too. When an insurance company buys insurance it is called reinsurance. While insurance companies retain financial reserves to pay losses, what happens if we had a plant explosion with 20 or 50 employees injured? What if an MTM member had a building fire that injured a group of employees? Or a car accident with 5 employees seriously hurt? You get the picture. While this type of loss probability is low, it can (and will) happen. It is prudent for MTM to have protection for these possible shock losses.

At MTM we buy reinsurance for catastrophic events. Your MTM pool has plenty of financial reserves to cover losses. This is proven by our financial reserve evaluations by the Michigan State Insurance Department, independent outside actuaries, the MTM Board made up of members and verified by an outside insurance rating agency, Demotech which rates MTM financial stability as A’ – Unsurpassed. Still, we would not want MTM’s financial condition (or our member dividend program) hurt by a shock event. We would never want our Member dividend program harmed because of a low probably, but significant single loss event. Conservative management of your company requires us to buy this type of insurance protection.

So with that background, now is the time of year to search, evaluate and purchase MTM reinsurance effective 1/1/2020. Over the last two weeks I have met with 9 companies to get competitive bids for MTM reinsurance. Due to the expense of this coverage and effect on MTM’s members, several MTM officers are involved. They include VP of Sales, Megan Brown, Chris Doebler, CFO, Glenda Moyle, Premium Accounting Manager, Donna Motley, VP of Claims and Ruth Kiefer, VP of Loss Control. Showing the quality of MTM management brings the price down for this reinsurance coverage.

Reinsurance cost is one of our highest expense items after claims payments. And like you with suppliers, I have to negotiate hard with present vendors and look for new vendors to reduce expenses. It’s part of our job. For me, saving money on reinsurance goes straight to the bottom line and into the MTM member dividend program.

Now you know about insurance company insurance, reinsurance.

Until next month, enjoy the beautiful fall weather.

Normally in the summer MTM has a slight slowdown from the rest of the year. Here’s the high level annual MTM plan: In January we are wrapping up details/printing documents for our members largest renewal month. February we are working hard to finalize 12/31 numbers and the required actuarial work to present to Board Committees and the full MTM Board. These meetings are where the important member dividends are discussed. Then in March and April we prepare and deliver member checks. In May once again we have Board Marketing/Underwriting Committee, Board Finance Committee and full Board meetings. It’s busy. June we are prepared for another busy member renewal month – July. In July and August staff will take vacation and we get ready for the normal year-end sprint. September is when we plan reinsurance (insurance for possible large MTM member losses) meetings, our annual member meeting in October and send out individually tracked ballots for the annual Board member vote. October is a month when all Board committees meet as well as the full Board and the Annual Members Meeting. Finally in November and December we are preparing all the studies and documents for January renewals. Each renewal push involves Claims staff, Loss Control, Accounting, Underwriting and Marketing staff.

That’s the year in summary. But this summer has been different. Several projects took over July and August. Let me cover them for you.

Beta testing of a new out-of-state coverage option for our members. Beta test #1 in January found several flaws. Much was learned. Beta test #2 went/is going well. We plan a full rollout for January 1, 2020.

Loss Control 3 Day MIOSHA 10+ Hour General Industry class for our members as well as individual Stop the Bleed trainings and kits.

Reinsurance program revamping (seeing if we can save MTM insurance cost – which goes back to our members).

Office buildout going on this summer, moving in September. We got more space and saved money too.

Loss Portfolio marketing and out-of-state option. Still deep in this project, but on target.

When you tell me how busy your shop is, I now have more empathy. It is a busy time for all of us. Hope you are getting some time to enjoy the last of our summer days.

If you are a January 1st renewal, please be on the lookout for your payroll renewal form. Payroll renewal forms have been sent out to all insureds that have an effective date of January 1st 2020. We are asking for your estimated annual payroll for 2020 which assists in reducing that chance for additional audit money due at the end of your policy. Please complete the form and return it to Glenda or an additional copy can be requested by emailing glenda.moyle@mtmic.com/blog.

As of September 30, 2019 our new address is:

39500 High Pointe Blvd. Suite 260
Novi, MI 48375

Please continue to mail all correspondence to:

P.O. Box 9150
Farmington Hills, MI 48333-9150
Phone: 800-274-5606
Fax: 248-488-1980

On Thursday, October 17, 2019

AGENDA:

• Welcome & Introductions: Megan Brown, ARM, CWCP, CAWC, Vice President of Sales & Marketing
• Company Overview: A Year in Review: John R. Karlen, CPCU, APA, ARe, President
• MTMIC Dividend History: An Early Look at 2019: Chris Doebler, CPA, Chief Financial Officer
• Maintaining a Safe and Drug Free Workplace: Lori Schuck Barresi, Allied Safety Consultants
• Creating a Safety and Security Plan for Your Business: Darcy Leutzinger and Lindsay Gietzen, Premier Safety Group

Well, after having no spring, summer has finally arrived and it’s in full force. Hot, humid, mosquitos – the summer we all know in Michigan. With July here, the first six months of 2019 of MTM loss results are now in the books. During my recent visits to MTM members, the most common question is how does it look for our next dividend. Here’s my answer on that subject with the caveats: 1) things can change good or bad. 2) we still have half of the year to complete. With that said, the first six months of 2019 were good. The results if this was the whole year would be a nice member’s dividend to distribute. 2019 losses are lower than expected both in frequency and severity. As an example on the severity side, last year, in 2018 we experienced two fatalities. So far in 2019 (knock very hard on wood) we are at zero. On this one metric, over the last six years: 3 of the years we have had one fatality per year, two years at 0, and then last year, at 2. Even with “regular” claims, frequency this year is looking good. Congratulations to our members for their Loss Control efforts and a special shout-out to the MTM Loss Control team.

My goal/hope is that the second half of 2019 is as good as the first half of 2019. This would make delivery of member dividend checks early in 2020 a lot of fun. This would be the sixth year in a row of owner dividends.

Lastly, every October we have the annual MTM members’ meeting and lunch. As in past years this lunch is held in the delightful location/facility of The Inn at St. John’s, Plymouth, Michigan. The date has been set for October 17th. A “Save the Date” notice was recently mailed out. Last year’s presenter was “active shooters”. This was a very interesting presentation and our members gave it high marks. This year the topic is “MTM is providing tools to a safe, secure, and drug-free workplace”. MTM’s own Megan Brown, Vice-President of Marketing and Sales does a great job finding outstanding speakers on hot topics. I hope you can join MTM staff and another 100 MTM members.

Until next month, enjoy the summer. — John

Be on the lookout for the 2020 Election Ballots that will be mailed to you in the next few weeks. The nominees for re-election are:Jack Accardo – Haller InternationalKurt Heuser – Tooling Solutions GroupJoe Keppler – Shuert Industries, Inc.The results of the election will be announced at the Annual Meeting in October.

Did you know that you could be rewarded by referring business to MTMIC?

If a policyholder or their staff makes a referral they are eligible to receive a $100 gift card when the referred company binds coverage with MTMIC.

Please contact Megan Brown for more information.

We are excited to announce that we have enhanced our customer portal so that you will now have the ability to upload medical documents as a means to get them to the claims adjuster that is handling your claim. This can be done by following these simple steps:

MTM members are well acquainted with their Loss Control representative and the services they provide. MTM Loss Control focus has been the same for 44 years. Last year we conducted in excess of 950 site visits. Given that we have 921 existing members, almost all members see their Loss Control rep in person regularly.

Every weekday MTM loss control representatives work to improve the safety of our member’s shops. Sometimes that work involves safety recommendations, sometimes safety presentations, and sometimes research for a member on a new system, rule, or procedure.

At the annual MTM member’s meeting last October, we had a presentation on “Active Shooter” in the workplace. Given the headlines this topic has garnered recently, it was no surprise that the October, 2018 annual meeting had its largest member attendance in company history.

Over the last month, I have delivered 152 MTM member dividend checks. As you can imagine, I have seen many interesting shops, met great people and each delivery has a story. From those visits, there were a few that I would like to share. Let me tell you about one. Mollertech, LLC.

Mark your calendars now so you do not miss our 2019 Annual Meeting! Join us October 17, 2019 at the Inn at St. John’s in Plymouth, Michigan.

Meet Two of our Annual Meeting SpeakersDarcy Leutzinger and Lindsay Gietzen “Creating a Safety and Security Plan for your Business”

On February 21, the MTM Board of Directors with management reviewed 2018 financial results. This meeting took place after the Board Marketing and Board Finance Committees had weighed on this issue two weeks earlier. At the end of the Board review, they approved three member dividend declarations. The first dividend was $1.6 million to be shared by all MTM members.

The second declaration was an additional $2.4 million dividend to be shared by MTM members that had a loss ratio lower than the company’s average loss ratio for three years. In the third declaration, the Board approved a new dividend of about $450,000 to newer MTM members to bring them into the dividend cycle sooner than has been in the past.

By Chris Demeter, Senior Loss Control Consultant

If you have been a frequent reader of our monthly newsletter over the years, you know we have showcased a couple times the Alliance MTMIC has with MIOSHA CET. We have one of the longest running Alliances, 13-years and going strong. Every three years the Alliance has to be renewed. This year the renewal signing was done at the MTMIC office. After each renewal signing, MIOSHA releases a press release announcing the signing. Below is the press release along with a couple pictures.

To learn more about the free consultation and training services MIOSHA CET offers, see the following link: https://www.michigan.gov/documents/dleg/wsh_ cet0165_216929_7.pdf

MTMIC members who are interested in setting up free MIOSHA CET services at your facility (e.g. air or noise monitoring, hazard survey or training) contact Chris Demeter, MTMIC Alliance liaison, at 517.230.0937 or by email at chris.demeter@mtmic.com/blog. Chris will submit a request for consultative assistance (RCA) form on your behalf.

January is a busy month for MTM Management. Nearly half of all MTM members have policies that renew in January. Also in January the MTM Accounting people are busy working with our outside actuary to close and determine the results for 2018. In 2018 we had two fatalities. In an average year our members have two amputations. That’s what it was in 2017, and in 2018 we had seven amputations. During the year, these results were concerning, and we asked the MTM loss control staff to give more focus to this area with our members. Not only do these severe accidents have a dramatic impact on the worker and their families, but it also is hugely disruptive to the shop and the remaining staff. Loss Control people, as they visit you, will be paying special attention to lock out/tag out procedures and electrical connections.

With this increase in severity drawing our focus, we found some good news, too. The good news is that the average frequency of normal accidents was less. That is some of the increase in severity is offset by reduction in normal accidents. So with a drumroll, in February management recommended and the MTM Board committees and the MTM Board approved a $4.5 million dividend to MTM members. This equals 25% of the current premium. This is also the fifth year in a row where member dividends have been paid. Like past years, the dividend is made up of parts. Part one is a $1.6 million loyalty dividend, which is split amongst all MTM members.

All State & Federal Labor Law Posters have been mailed out to all of our companies, as well as updated minimum wage information and the new Paid Medical Leave Act details. If you have NOT received yours please contact Patty Allen (patricia.allen@mtmic.com/blog) who will get a replacement set mailed out to you.