To our Colleagues in the California Workers’ Compensation Community,
In 2017, the WCIRB completed a number of historic transformative initiatives from our first five-year strategic plan. The WCIRB transformed from a traditional bureau data collection organization in 2012 to a fully capable data analytics organization in 2017, while remaining diligent in the fulfillment of our core responsibilities as California’s workers’ compensation licensed rating organization and designated statistical agent.
The strategic road ahead to 2022 will be equally challenging and exciting for the WCIRB team as we brave new frontiers of value creation for the membership and the workers’ compensation community. We look to evolve our capabilities and our system insights into the arena of data science – bringing together a holistic actuarial and behavioristic view on the dynamics of underlying cost drivers and their implications on the overall health of the workers’ compensation system.
The WCIRB is well-positioned today for this next five-year leap forward. We have an established core of value-added products, enabling technologies, high customer satisfaction, and strong organizational alignment around our Mission guided by leadership that drives us to be the best in our business. The following summarizes the essential characteristics of the WCIRB – Past, Present and Future and highlights the WCIRB’s significant accomplishments in 2017.
The following highlights significant 2017 accomplishments and the strategic proposition we are leading toward over this next five-year planning horizon.
Vital to the success of any high performing company is the quality, drive and alignment of its leadership team. During 2017, we made a number of strategic moves to further strengthen the leadership team and invest in their development to maximize their potential for success.
Pure Premium Rate Filings
The WCIRB completed and submitted to the Insurance Commissioner two advisory pure premium rate filings this past year; one for mid-year 2017 and the annual 2018 filing. The Department of Insurance decisions on those filings continue to reflect strong support for the WCIRB’s actuarial methodologies, and transparency and outreach in the process continues to a high degree through our open Actuarial Committee meetings and broad public availability of our work product.
Annual Regulatory Filing
The culmination of work throughout the year with the Classification and Rating Committee is the development and submission of the WCIRB’s annual regulatory filing to the Insurance Commissioner. This year’s filing included the results of our reinvigorated class research team, which produced eleven new classifications for 2018; nearly doubling the number of new classifications created by the WCIRB over the last decade.
Enterprise Risk Management
We continue to mature as an organization in the scope of disciplines that encompass holistic enterprise risk management (ERM). The core elements of a modern ERM framework are in place and come together under the auspices of the Audit Committee, which oversaw three ‘clean’ financial audits and 13 internal quality control reviews in 2017.
Our transformation as a company is widely recognized across our stakeholders. We continue to engage with leaders and focus groups throughout the industry to listen, dialogue and develop plans for products and services that are relevant and impactful to the customers we serve.
2017 marked the culmination of deliverables on three historic multi-year initiatives: Classification and Test Audit (CTA) Transformation, Straight-Through Processing and Voluntary Indemnity Reporting.
CTA Transformation, launched in November 2017, is a seismic shift from a transaction-measured, highly qualitative inspection report process to a targeted inspection, data capture on-site process that delivers a more transparent, quantitatively-based report through a technology toolset that enables greater efficiency and consistency in outcomes. It is the most historic change for CTA in decades.
The WCIRB conducted its third annual Voice of the Customer Survey in October 2017 across all core customer groups with responses from insurers and agents and brokers which were about equal in terms of response share representation.
The table above indicates strong results in customer satisfaction, year over year, in these essential areas, with respondents scoring from 1–never to 5–always.
Of particular note is the ongoing increase year over year in the area of developing new products that meet our customer’s needs (see table above), which affirms that we continue to hit the mark with product innovation and delivery.
2017 was another record-setting year for our outreach initiatives. We attracted more than 5,700 attendees through 273 separate events, and the web channel we initiated last year continues to be very popular. Our Mod Talk series, Class Talks on the upcoming classification changes for 2018 and our research series all combined garnered well over 1,000 participants.
In addition, in our quest to continue the expansion of educational offerings, we developed and successfully launched the second in a series of four comprehensive online courses, Experience Rating Fundamentals.
The WCIRB is well-positioned to add significant ongoing value in service to the membership and the broader stakeholder community over the next several years. With the insurance industry evolving to more data-driven decision-making through predictive analytics, data science and data modeling, the WCIRB intends to remain a vital resource of data, information, and insights into the drivers of cost in the California workers’ compensation system. We have the foundation of technology, tools and talent to be a leader in this evolution, and our five-year forward strategic plan is aligned in that direction.
On behalf of my colleagues at the WCIRB, thank you for your continued support and commitment to our company’s Mission to remain integral to a healthy workers’ compensation system. We could not do all that we do without the ongoing involvement of our members. Please let us know how we can be of greater service to your success!
Bill Mudge, President and CEO