How The Virtual Risk Manager “VRM” Works

Work First Casualty Company designed the Virtual Risk Manager (“VRM”) for temporary staffing companies to evaluate risks associated with duties of their associates and potential job orders.  The VRM is designed to assist all aspects of the organization, from the salesperson introducing the firm’s capabilities, to the risk manager in evaluating the potential risk.  We recommend users bookmark this page and return with each new potential job order, using the information provided to facilitate discussions on safety and loss prevention which will ultimately help in avoiding injuries to your workforce.

Understanding the VRM

Where does the data come from?

Data has been compiled from multiple data sources to provide insight on a very broad scale.  Sources such as National Council on Compensation Insurance (NCCI) and state sources have been included.  Additionally, Work First Casualty Company has used data from its partners to further bolster the data available. In some instances, our staff have contributed their insights to help you interpret the information being provided.

How should the information be used?

Information provided through the VRM is designed to facilitate discussions with potential clients and protect your associate workforce by providing insight into areas relating to loss prevention and safe work practices.  The graphics have been designed so that as you become more familiar with the VRM tool, you may quickly identify potential risks associated with the particular class code. By identifying how often accidents may occur (incident rate) and potential severity (loss ratio) within a class code and its hierarchy, you can identify risks associated with the job order and ways to prevent injuries from occurring.

Why show the hierarchy?

Loss ratios and incident rates have been shown by state for the class code, its group, and parent codes. Work performed within a specific class code may often carry attributes similar to the group or parent for which the class code falls.  By showing the related loss data for the hierarchy you can identify if the broader risk should be evaluated.  When there is a material deviation between the class code and its related hierarchy there should additional diligence in assessing the risks associated with a particular job description.  Deviations among the hierarchy also requires follow up discussions to determine the potential for added risk from the environment or surroundings.

Each Grouping Matters

Hierarchy of Code

This section simply identifies the hierarchy of the class code being queried.  Every class code has been placed into a ‘Group’ which is a related category of class codes within an industry or job related function.  Groups are then further categorized into a broader segment we have labeled as ‘Parent’ which is usually a broad industry segment.  Many times we focus on the class code itself, but within the hierarchy you may find further exposures to be evaluated involved within the job duties of an associate.

Risk Information

At a very high-level, Risk Information provides you the fastest and the broadest information on the overall class code risk.  The overall risk grade (red, yellow, green) has been designed to quickly identify when the class code has expected severity or a high frequency of injuries.  The overall risk is a composite score determined using multiple factors.

“Mod Predictor” is a prediction tool to assist in determining the impact a class code could have on a company’s experience modifier as assigned by NCCI. The mod predictor assumes that when your mod is at ‘unity’ or a 1.00 experience modifier, placing workers within the class code queried could result in improvement or deterioration of your current experience modifier.  A company’s experience modifier has a direct impact on premium paid for workers’ compensation, so this information can ultimately help to lower your workers’ compensation cost.

The loss ratio shown is provided by the NCCI or Independent Bureaus as reported by all insurers writing workers’ compensation. The loss ratio is a ratio of total losses to premium collected for the class code. Both severity and number of claims impact the loss ratio. The further into the red represented in the sliding scale, the higher the volatility and risk relative to premium paid.  Maintaining a low loss ration will make your company more attractive to insurance carriers and lower your premium.

The incident rate is provided by the NCCI or Independent Bureaus as reported by all insurers writing workers’ compensation. The incident rate represents the number of claims reported relative to manual premium reported. This ratio represents how likely a claim, or incident, will occur relative to the premium paid.  The number one thing you can do to lower your experience modifier and ultimately your premium is to reduce your frequency of injuries.

Claim Information

Graphically displayed are the most frequent and severely injured body parts within the class code.  Using this information will enable your firm to look for loss prevention and safety guidelines at a customer worksite that are designed to prevent the most common injuries.  Additionally, the worker’s capabilities should be assessed for the fitness and training required to prevent injury.

For example, if lower back has been identified as a common injury within a class code, does the worksite provide back support and back restraints? Has the associate being assigned to the job been properly trained in lifting?  Is the associate fit for the task being assigned?  Perhaps a pre-assignment fitness or lift test should be performed to ensure the placement is the right match between the job seeker and the work to be performed.

Loss mitigation

We rightfully can boast of our incident rate reduction program, designed specifically for your employees working at a client’s controlled worksite.  Our loss mitigation for the temporary staffing industry is unmatched.  Contact us today for additional insight how the VRM can assist all aspects of your organization in evaluating, assessing, and preventing risk to your associate.