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Large Deductible Program. Cash flow Less $ on premium Retained losses are deductable Catastrophic protection Pricing driven by individual risk history Claims handling Have financial capacity to retain risk; financials meet carrier criteria. Collateral and escrow Less budget stability

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large deductible program
Large Deductible Program
  • Cash flow
  • Less $ on premium
  • Retained losses are deductable
  • Catastrophic protection
  • Pricing driven by individual risk history
  • Claims handling
  • Have financial capacity to retain risk; financials meet carrier criteria
  • Collateral and escrow
  • Less budget stability
  • Pricing driven by individual risk history
  • Increased administration
self insured retention program
Self-Insured Retention Program
  • No collateral
  • Less fronting cost
  • Retained losses are deductable
  • TPA or self administration selection
  • Choose your lawyer
  • Insurers do not “Drop Down”
  • Dedicated internal resources to manage claims
  • Limited carrier selection
  • Certificate of insurance issues
qualified self insured program
Qualified Self-Insured Program
  • Frequently the least collateral
  • Possible reductions in assessments and taxes
  • TPA or self administration selection
  • Choose your own lawyer
  • Must still buy excess coverage
  • Collateral must be posted in each state
  • States hold on to collateral for a long time
  • No “Out and Back In” without reapplication
  • Increased administration
risk transfer risk retention efficient frontier
Risk Transfer/Risk Retention Efficient Frontier

Risk Transfer Savings

Bare

The Efficient Frontier 1

Risk Financing

Alternatives

Current “deductible” program

Risk Retention

Guaranteed Cost

1The efficient frontier is the point at which there is no greater expected reward for a given level of risk retention

total cost of risk
Total Cost of Risk

Measuring Program Efficiency Over Time

TCOR + Savings

Historical TCOR

slide7

Walmart U.S. (approx. 1,420,000 associates)

    • 3,600 Walmart Retail Stores
    • 153 Neighborhood Markets
    • 598 Sam’s Clubs
    • 142 Distribution Centers
  • Walmart International (approx. 709,000 associates)
    • 4,557 Retail Units
    • 14 Countries

Walmart Stores, Inc. is comprised of:

walmart s casualty program utilizes the following structure
Walmart’s casualty program utilizes the following structure:
  • Self-insurance – all states
  • Administration through wholly owned subsidiary TPA – 49 states
  • Administration through outside TPA – 1 state
  • Self-insurance – 13 states
  • High deductible insurance coverage – 36 states
  • Administration through wholly owned subsidiary TPA – 35 states
  • Administration through outside TPA – 14 states

General Liability

Workers’ Compensation

the walmart casualty focus
The Walmart Casualty Focus:
  • Workers’ Compensation
  • ensure associates that suffer work injuries:
  • Receive prompt and appropriate medical care that is focused on their recovery and return to gainful employment;
  • Receive prompt and appropriate disability benefits;
  • Compliance.
  • General Liability Program
  • ensure all customers claims are:
  • Addressed promptly and appropriately while recognizing the importance of our customers in the retail environment;
  • Compliance.
program structure allows walmart to concentrate on our associates and customers through
Program structure allows Walmart to concentrate on our associates and customers through:

Self Administration

RMIS

Risk Control

Process Improvement

administering claims through our wholly owned subsidiary tpa helps ensure
Administering claims through our wholly owned subsidiary TPA helps ensure:
  • Appropriate claims management by:
  • Data integrity:
  • Accuracy
  • Analysis
  • Functional
  • Owning the process
  • Experience in best practices between in-house TPA and outside TPA vendors
  • Compliance focus
  • Direct relationship between operations and risk management
the appropriate rmis tool is vital to the continual evolution of our program by allowing
The appropriate RMIS tool is vital to the continual evolution of our program by allowing:
  • Flexibility
  • Scalability
  • Sustainability
  • The RMIS tool must act as an “enabler” to allow your property and casualty program to pursue overall company objectives.
risk control although not part of our risk management team is an integral partner that focuses on
Risk Control, although not part of our Risk Management Team, is an integral partner that focuses on:
  • Safe place to work /
  • safe place to shop
  • Accident prevention
  • Risk Control
  • Accident investigation
  • Post accident support
lastly our program structure allows for continual focus on process improvements
Lastly, our program structure allows for continual focus on process improvements.
  • Utilization of real-time data from all aspects of Walmart to drive:

Resource allocation

Safety focus on accident prevention

Workflow process improvements

Trend analysis

in conclusion our program structure
In conclusion, our program structure:
  • Works with our business model
  • Ensures that we capture and evaluate the data to drive improvement
  • Allows for optimum focus on our customers and our associates