2. ZOOM® is Beecher Carlson’s patent pending business process that combines the science of
predictive analytics and data mining with hands-on claims consulting and loss control / engineering
expertise for your workers’ compensation risk. Risk management and claims professionals are often
plagued with reports, analytics, data sets, loss runs and actuarial reports from multiple sources.
ZOOM® cuts through the clutter and provides focused actions that will result in reducing your loss
costs every year.
ZOOM®IN ON YOUR LARGEST COST OF RISK
Our ZOOM® process utilizes customized data analysis to generate strategies that are specifically
designed to reduce loss costs. Central to our approach is a deep measurement and analysis of
your business. The result is evidence-based information used to drive decision making and help
you understand the causes and costs of risk within your program. This knowledge helps us
collaborate on executing deliberate action plans involving early identification, management of
high risk claims and process improvements to further reduce your cost of claims.
PROCESS SOLUTIONS
JOINT STEERING COMMITTEE AND
STEWARDSHIP / ACCOUNTABILITY
STRATEGIC CLAIM
FILE MANAGEMENT
HISTORICAL CLAIMS
CURRENT CLAIMS
PROSPECTIVE CLAIMS CLAIMS / PREDICTIVE
MODELS
CAUSE & EFFECT /
ROOT CAUSE
SCORECARDS &
GOAL TRACKING
SOLUTIONSOLUTIONSOLUTION
LOSS DATA ANALYTICAL TOOLS SOLIUTIONS
ZOOM®PROCESS
3. ZOOM®CLIENT RESULTS
ÂÂ Insurers will accelerate a reduction
in collateral for ZOOM® clients
ÂÂ Insurers will lower deductible /
excess workers’ compensation
premiums for ZOOM® clients
ÂÂ WithZOOM®analytics,wepresent
a stronger marketing submission
u
x
v
w
14% Average
Reduction on
Projected Ultimate
29% Average
Reduction on
Reserve Liabilities
31% Average
Reduction on
Existing Collateral
Mitigated Clients
Claim Cost by
$215,041,280
INNOVATIVE COMPANIES DON’T LOOK FOR TRENDS. THEY CREATE THEM.
5. ZOOM®CASE STUDY #1
1%
6%
12%
16%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
PY 2010 PY 2011 PY 2012 PY 2013
Financial Savings % of Savings
$14.26M IN ULTIMATE REDUCTIONS
KEY SOLUTIONS IMPLEMENTED
• Enhanced Claim Review Strategy
• Predictive Modeling
• Claim Selection Process for Staff
• California
• Unbundle/custom MPN in CA
• CA PBM Enhancement
• Litigation Avoidance and Management
• NCM Assessment
• Subrogation Recovery
I N I T I A L
A S S E S S M E N T &
O P P O R T U N I T Y
T A R G E T S
I N I T I A L
T E R M
R E S U L T S
R E T U R N O N
I N V E S T M E N T
Increasing year-over-year loss rate; double digit year-over-year growth in average
cost per claim; ongoing development of older claims / long tail
1. Reduce existing and projected loss rate
2. Reduce development by at least 10% over previous 12 months while increasing
the indemnity claim closure rates
Three-Year Engagement: Establish development and closure targets each year
Exceeded target by approximately $10M while closing out 130 more claims than
projected (more than 50% of claims closed in first 12 months)
$14.85 to $1
6. ZOOM®CASE STUDY #2
11%
1%
8%
1%
0%
2%
4%
6%
8%
10%
12%
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
PY 2010 PY 2011 PY 2012 PY 2013
Financial Savings % of Savings
$16.91M IN ULTIMATE REDUCTIONS
KEY SOLUTIONS IMPLEMENTED
• Predictive Models/High Risk Claims Management
Process
• TPA Closure Performance
• Stay at Work Program Rollout/Training
• Early Intervention Strategy
• Allocation
• Joint Steering Committee
I N I T I A L
A S S E S S M E N T &
O P P O R T U N I T Y
T A R G E T S
I N I T I A L
T E R M
R E S U L T S
R E T U R N O N
I N V E S T M E N T
Double digit year over year growth in average cost per claim
1. Reduce existing and projected year-over-year average cost per claim trends by 6%
2. Close out historical claims below existing reserves
Two-Year Engagement
Improved year-over-year average cost per claim trends on average by 67.5%.
Approximately $17M reduction in ultimate loss projections post ZOOM®
engagement. Indemnity claims as a rate of exposure down 31% in most recent year.
$11.87 to $1
7. ZOOM®CASE STUDY #3
59%
40%
99%
37%
0%
20%
40%
60%
80%
100%
120%
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
PY 2010 PY 2011 PY 2012 PY 2013
Financial Savings % of Savings
$17.1M IN ULTIMATE REDUCTIONS
KEY SOLUTIONS IMPLEMENTED
• Monthly Steering Committee Calls and Scorecards
• Predictive Models to Identify Surgery Risk
• Setup Onsite Nurse Case Management
• Customized Medical Panels Based on Disability
Duration
• Dedicated Closure Team
I N I T I A L
A S S E S S M E N T &
O P P O R T U N I T Y
T A R G E T S
I N I T I A L
T E R M
R E S U L T S
R E T U R N O N
I N V E S T M E N T
One in five claims indemnity or lost time (20%+); high rate of lost work days;
stagnate loss rate
1. Reduce lost work day claims percentage and lost work days
2. Reduce ultimate loss projections
Three-Year Engagement
Reduced lost work days by 55% following first 18 months; indemnity claims
percentage reduced 35% to 50%; outperformed projected ultimate losses eight
consecutive years
$14.55 to $1
