Risk Modeling Report Highlights Trends, Solutions

The data in PDRMA's latest comprehensive Risk Modeling Report holds the key to more targeted solutions to common risk management challenges for PDRMA members. The report analyzes 15 years of historical loss information (2001–2015) in detail, taking a closer look at the most recent five years. “It identifies risk trends and highlights our loss-cause leaders,” explains Dane Mall, PDRMA Risk Management Services Manager. “Using this data, we evaluate the effectiveness of current programs and plan appropriate multi-year strategies.”

Workers’ compensation claims are still the most prevalent losses with slip, trip and fall incidents costing members more than $24 million over the past 15 years. Those incidents also represent 36 percent of total severity and 21 percent of the total frequency. “While claim severity in this area has drifted downward since 2008, we still need to be more vigilant about employee safety, especially staff of diverse ages working in strenuous labor positions,” Mall notes. 

In terms of property exposure, building fires and water intrusion — flood, rain, water damage — remain significant cost drivers. “Fire claims since 2001 totaled slightly more than $11 million, with maintenance facilities being the most frequent location of fires, and water intrusion claims totaled more than $12 million over the same 15-year period,” he says.

Targeted programs reduce risks

PDRMA continues to help members address slip/trip/fall, lifting and material handling workers’ compensation exposures through its PDRMA Injury Prevention Program (PIPP) and Core 6 Strategy.

Introduced in 2010, PIPP focuses on reducing and mitigating workers’ compensation losses by integrating safety and injury prevention into member agency culture, so it becomes part of employees’ everyday activities. A key tool in continuous safety improvement is Plans of Action (POA) that help members focus on reducing injuries and minimizing losses throughout the year. A renewed focus on providing more time for Risk Management Consultants to devote to higher-loss members and follow up on member POAs led to PDRMA’s move to a four-year Loss Control Review schedule in 2015 along with other service-delivery changes.

The Core 6 Strategy supports the overall goals of PIPP and POAs, being a quick reference for keeping safety front and center when employees begin work tasks:

PDRMA also provides resources to address property risk. Bono Consulting, Inc., (BCI) conducts flood/water intrusion surveys at member locations and develops plans to eliminate future risks. To date, BCI has conducted 18 flood/water intrusion assessments that have led to members implementing preventive measures. 

Kodiak Fire Protection Services, Inc., is another resource available to members involved in facility construction and/or renovation projects. Kodiak reviews pre-construction or renovation plans and recommends appropriate fire safety systems.

“For existing facilities, we recommend infrared testing to detect critical electrical faults that can lead to fires,” says Mall. “PDRMA identifies members according to exposure for infrared scanning through Alliant Risk Control Services and offers a $200 subsidy through Fitzgerald Lighting Maintenance, Inc., if members choose additional or more frequent scans.”  

Future plans

The Risk Modeling Report provides important loss information and trends from which PDRMA develops a multi-year risk management service delivery plan and evaluates its impact. By focusing resources on specific causes of losses, lines of coverage with high loss-experience ratios and individual members with higher-than-average losses, PDRMA Risk Management staff continues to help members reduce their losses and better manage risks.

PDRMA Resources:

• Core 6 Video.
• Core 6 Strategy Card — Order from PDRMA website.
• LRN #1599 — Pre-construction Design Guidelines.
• LRN #1617 — Infrared Scanning Services.
• LRN #1607 — Floor and Water Intrusion Prevention.