The Historical Timeline of LWCC
Louisiana Workers’ Compensation Corporation (LWCC) is a private, nonprofit mutual insurance company that is the largest workers’ compensation carrier in the state. The company maintains an “A” (Excellent) rating from A.M. Best Company. LWCC’s creation revitalized a workers’ comp system that was on the verge of collapse, and the company has continued to provide much-needed stability in Louisiana. While other carriers will come and go as market conditions fluctuate, LWCC will always be here to meet the needs of Louisiana businesses and their hardworking employees. The following is the company’s timeline of significant achievements and milestones.
Louisiana companies experience a 477% increase for workers’ comp insurance, and more than 70 percent of these businesses unnecessarily fall into the Louisiana Assigned Risk Workers’ Compensation Insurance Plan (“assigned risk pool”).*
* Scott, Loren C. Major Problem Solved and New Jobs: The Impact of the Louisiana Workers’ Compensation Corporation on Louisiana. March 1997.
October: Louisiana Workers’ Compensation Corporation (LWCC), a private, nonprofit mutual insurance company, is created by a constitutional amendment and legislation to save the state's failed workers’ compensation system by tackling the factors that led to its demise and stabilizing costs. Governor Charles Elson “Buddy” Roemer III proclaimed the adoption of the constitutional amendment on October 31, 1991, and the amendment became effective on November 21, 1991.
December: LWCC’s board of directors names Steve Cavanaugh president and chief executive officer of the company. Cavanaugh brings a vast amount of experience to the new corporation. After practicing law in the workers’ comp field and managing a majority of the state’s workers’ comp self-insured pools, he was selected to restructure the work comp system as director of the Office of Workers’ Compensation. While there, he established one of the most aggressive and comprehensive medical management positions in the country, helped craft new statutory guidelines for claims management, and created a hearing officer system for handling claims disputes.
October: LWCC opens for business and hits the ground running. On October 1, 1992, 381 policies are issued and three claims are received. LWCC begins aggressive claims management programs, safety initiatives, fraud investigations, and a “no settlement” policy while maintaining low operating costs.
February: LWCC pays off a final start-up loan of $4.5 million before its due date. All start-up loans were obtained from local banks. As a private insurance carrier, LWCC has never used taxpayer dollars.
July: LWCC’s fraud unit provides evidence necessary to earn its first fraud conviction, prosecuted by the Orleans District Attorney’s Office.
August: In less than one year after opening its doors, LWCC reaches a policy count of 30,000 with an estimated annual premium of $246 million.
March: With assets topping $250 million, LWCC opens a full-service branch office in Metairie.
November: To reward loyal policyholders who had successful safety programs and favorable loss ratios, LWCC initiates Customer Performance Incentives (CPI), or premium credits based on safety results with LWCC.
January: LWCC begins contracting with health-care providers to create OMNET®, the state’s first and largest managed-care network for occupational injuries.
May: LWCC opens its second full-service branch office in Shreveport.
July: An overall rate decrease of 4.41% goes into effect. After three years without a rate increase, LWCC lowers rates on 15 class codes affecting 60% of policyholders.
November: Financial stability prompts LWCC to lower security deposits. More than $20 million is credited to policyholders, and remaining deposits continue to earn them interest.
April: LWCC kicks off $1,000 reward campaign for tips leading to criminal fraud convictions. The intensive public awareness effort generates more than 200 calls to the Fraud Hotline this spring alone.
June: A safety services report shows policyholders with LWCC since 1993 experienced an average 46% decrease in their accident rates.
October: LWCC begins writing multistate coverage for Louisiana policyholders with temporary or permanent operations in other states.
LWCC’s number of safety services visits tops 15,000 since inception. A study concludes that, on average, policyholders’ accident frequency drops more than 40% after visits from LWCC safety services representatives.
LWCC institutes new claims teams made up of claims representatives, nurses who serve as patient advocates, and return-to-work specialists.
January: LWCC’s educational efforts to help policyholders control their experience modifications (“E-mods”) pay off. An LWCC report indicates that the number of policyholders with E-mods under 1.00 increased 40% compared to 1995.
June: LWCC releases drug study indicating that businesses with drug-testing programs have half the number of accidents and their accidents cost 28% less than those without programs.
August: LWCC’s tax-exempt status is clarified by a federal amendment as part of the Taxpayer Relief Act of 1997.
January: An overall rate decrease of 13.64% goes into effect.
LWCC rolls out a new pricing program, with over 20,000 policyholders seeing a decrease in premiums. More than 80 classes of business see decreases greater than 20%.
September: With more than 2,000 participating health-care providers, OMNET® saves more compared to non-network claims and results in fewer lost workdays. OMNET® is LWCC’s statewide network of more than 2,000 medical providers.
December: LWCC Interactive is launched, allowing policyholders and agents to access current information about their policies via the Internet.
July: A package of legislation, establishing the procedures to remove the full faith and credit of the state and ensuring LWCC’s long-term stability, passes the Louisiana Legislature in convincing fashion.
An LWCC study shows that workplace accidents have dropped 46% since 1993 (LWCC’s first full year of operation).
January: A.M. Best upgrades LWCC’s rating to an “A-” (Excellent).
May: LWCC receives approval from the U.S. Department of Labor to write federal coverage without the state of Louisiana’s full-faith-and-credit guarantee. Effective May 1, 2000, the full faith and credit of the state of Louisiana expires, and all provisions outlined in LWCC’s 1999 legislative package take effect.
April: LWCC’s new business unit structure is implemented to ensure better coordination and delivery of service to agents, policyholders, and injured workers.
July: An overall rate decrease of 15.83% goes into effect.
June: A.M. Best upgrades LWCC’s rating to an “A” (Excellent).
September: LWCC is recognized as being one of the top 50 property and casualty insurers in the nation by Ward Group, a Cincinnati-based management consulting firm acknowledged as the leading authority on insurance industry benchmarking. The group chooses LWCC as a Ward's 50 company from over 2,700 property and casualty insurers nationwide that demonstrate a high level of safety, consistency, and performance.
October: LWCC observes its tenth anniversary of providing workers’ compensation insurance to Louisiana employers.
April: LWCC launches Well@Work.com, a website created for injured workers and designed to help them return to work as quickly as possible by offering information on claims and benefits, health and safety tips, and other information to help ensure a successful and expedited recovery.
May: LWCC officially goes live with its new policy administration software, PowerComp®, by Taliant Software, LLP.
June: A.M. Best affirms LWCC's “A” (Excellent) rating.
August: LWCC creates OMNET® Gold, a new status in the OMNET® program consisting of a select group of providers who have received continuing medical education training by the prestigious Johns Hopkins University, based on its occupational management program model. OMNET® is LWCC’s statewide network of more than 2,000 medical providers.
September: LWCC receives the Ward’s 50 designation by Ward Group for the second year in a row, recognizing LWCC as being one of the top 50 property and casualty insurers in the nation.
An overall rate decrease of 3.68% goes into effect.
April: LWCC’s board of directors announces its first-ever dividend, paying $10 million to qualifying policyholders.
June: A.M. Best affirms LWCC’s “A” (Excellent) rating for the third consecutive year.
September: LWCC receives the Ward’s 50 designation by Ward Group for the third straight year, recognizing LWCC as being one of the top 50 property and casualty insurers in the nation. The group chose LWCC as a Ward’s 50 company from over 2,900 property and casualty companies in the United States.
December: LWCC launches AgencyPort, a system that allows agents to submit new business online.
April: LWCC pays its second dividend, returning $15.8 million to qualifying policyholders.
June: A.M. Best affirms LWCC’s “A” (Excellent) rating for the fourth consecutive year.
LWCC hosts the 2005 American Association of State Compensation Insurance Funds (AASCIF) Annual Conference in New Orleans. Over 800 U.S. and Canadian state fund representatives and vendor exibitors attend the conference held at the Royal Sonesta Hotel.
August: LWCC receives the Ward’s 50 designation by Ward Group for the fourth year in a row, recognizing LWCC as being one of the top 50 property and casualty insurers in the nation.
September: An overall rate decrease of 2.7% goes into effect.
December: LWCC deploys Agencyport’s new renewal and endorsement component to selected pilot agencies. For the first time, agents and underwriters are able to automate the renewal and endorsement process in real time, removing the headaches and errors associated with phone-, paper-, and fax-based processes.
March: LWCC names Kristin W. Wall as its new president and chief executive officer. Wall was previously president and chief operating officer.
April: LWCC pays $19.6 million to qualifying policyholders, its third consecutive dividend.
June: A.M. Best affirms LWCC’s “A” (Excellent) rating for the fifth consecutive year.
July: LWCC receives the Ward’s 50 designation by Ward Group for the fifth year in a row, recognizing LWCC as being one of the top 50 property and casualty insurers in the nation.
October: An overall rate decrease of 2.7% goes into effect.
November: In recognition of his leadership and lasting contributions to the insurance industry in Louisiana, LWCC establishes the Stephen W. Cavanaugh Scholarship Fund in honor of the company's former president and CEO, who died November 15 of pancreatic cancer.
January: SafetyNet, a landmark workplace safety management software application, is launched by LWCC. SafetyNet automates the LWCC safety services program’s workflow and allows safety consultants to better assist policyholders with reducing claims frequency and severity.
April: For the fourth year in a row, LWCC pays a significant dividend–$23.2 million–to qualifying policyholders.
LWCC’s Risk Management Services adopts a new claims-handling organizational structure that more closely aligns with the company’s business unit structure, with personnel specializing in different aspects of each claim.
June: A.M. Best affirms LWCC’s “A” (Excellent) rating for the sixth consecutive year.
July: For the sixth straight year, LWCC is named by the Ward Group as one of the 50 top-performing property-casualty insurers in America.
October: An overall rate decrease of 7.6% goes into effect.
LWCC observes its fifteenth anniversary of providing workers’ compensation insurance to Louisiana employers, a milestone in its successful history.
The fourth annual LWCC-Kids’ Chance Invitational Golf Tournament raises $37,000 for the Louisiana Bar Foundation's Kids’ Chance Scholarship Fund. The event’s four-year total of $120,000 is designated for scholarships awarded to dependents of Louisiana employees injured or killed on the job.
April: LWCC pays to qualifying policyholders its largest dividend to date: $45.5 million.
The Greater Baton Rouge Business Report and Junior Achievement recognize LWCC as Company of the Year (in the “over 100 employees” category) at the annual Baton Rouge Business Awards & Hall of Fame banquet. East Baton Rouge Parish Mayor-President Melvin L. “Kip” Holden proclaims April 24, 2008, as Louisiana Workers’ Compensation Corporation Day.
June: To reinforce its commitment to encouraging safety in the workplace, LWCC launches a stand-alone “microsite”–www.saferplacetowork.com–providing a wealth of centralized safety information for both employers and employees.
A.M. Best affirms LWCC’s “A” (Excellent) rating for the seventh consecutive year.
July: For the seventh year in a row, LWCC receives the Ward’s 50 designation by Ward Group, recognizing the company as being one of the top 50 property and casualty insurers in the country.
October: An overall rate decrease of 12.7% goes into effect.
January: LWCC’s safety services department teams with an external vendor to offer comprehensive, online training using online study courses and streaming video, giving policyholders the ability to create custom coursework curricula. This online training service is offered free to policyholders 24 hours a day, 7 days a week.
April: LWCC pays a $7.5 million dividend to qualifying policyholders, bringing its cumulative total dividend paid to policyholders over the past six years to more than $121 million.
June: A.M. Best affirms LWCC's “A” (Excellent) rating for the eighth year in a row.
July: For the eighth consecutive year, LWCC is selected by Ward Group as one of the 50 top-performing property-casualty insurers in America–this time from over 3,100 property-casualty insurance companies nationwide.
October: An overall rate decrease of 12.9% goes into effect.
December: LWCC adds to its safety initiatives by introducing to policyholders a driving simulation tool created by Virtual Driver Interactive, Inc. that allows students to experience actual behind-the-wheel situations on a windshield-shaped monitor. Real-life defensive-driving situations are navigated using a steering wheel and foot pedals.
April: LWCC pays a $15 million policyholder dividend to approximately 18,000 qualifying policyholders, bringing its total cumulative seven-year dividend total to over $136 million.
June: LWCC’s financial strength rating of “A” (Excellent) by A.M. Best Company is affirmed. This is the ninth consecutive year that LWCC has received the “A” rating. LWCC’s financial size category is Class X.
July: Out of more than 3,000 property-casualty insurance companies nationwide, LWCC is named by Ward Group as one of the 50 top performers for 2010. It is the ninth consecutive year LWCC receives the prestigious Ward’s 50 honor.
October: An overall rate decrease of 4.1% goes into effect.
A final accounting shows that the 2010 LWCC-Kids’ Chance Invitational Golf Tournament raised a record $39,100 for the Louisiana Bar Foundation (LBF) Kids’ Chance Scholarship Fund. A check was presented to the LBF at an awards ceremony immediately following the tournament, held September 27 at the Country Club of Louisiana in Baton Rouge.
April: LWCC pays a $22.5 million dividend to approximately 18,000 qualifying policyholders, bringing its cumulative eight-year dividend total to more than $159 million.
A.M. Best reaffirms LWCC’s financial strength rating of “A” (Excellent) for the tenth consecutive year.
June: LWCC unveils its new Mobile Safety Training Center–a custom-built, 24-foot-long trailer that is capable of providing onsite, classroom-style training to policyholders. The center features satellite Internet access and can accommodate 11 learners, each with a 17-inch laptop computer for accessing online safety courses and exams. A 42-inch television is used for training that is conducted via the Internet, PowerPoint, or DVD.
November: LWCC is one of seven organizations inducted into the 2011 Palladium Balanced Scorecard Hall of Fame for Executing Strategy® at the Palladium 2011 Americas Summit in San Diego, California. Members of the Hall of Fame are recognized as organizations that have achieved premium returns through outstanding execution using the Balanced Scorecard (BSC), the world’s preeminent strategy and performance management system that links strategy to operations to drive business outcomes.
In addition to LWCC, the other six 2011 recipients from the Americas are Citi Performing Arts Center, one of the nation’s foremost not-for-profit performing arts and arts education institutions; Compartamos Banco, the largest microfinance institution in Latin America, headquartered in Mexico City; Elkay Manufacturing Company, a privately held, family-owned maker of sinks, faucets, cabinets, counter tops, plumbing, and water filtration systems for both residential and commercial markets; Infonavit, the largest mortgage lender in Latin America with more than five million mortgages on its books; Schincariol Group, the second largest beer brewer in Brazil and one of the top 20 in the world; and Department of Veterans Affairs, one of the U.S. government’s largest agencies, with 300,000 employees who obligate $129 billion annually on behalf of nearly 23 million veterans.
Founded in 2000, the Palladium BSC Hall of Fame program has a roster of hundreds of honorees in more than 20 countries. To see a complete list of the Hall of Fame recipient organizations, visit The Palladium Group.
April: LWCC returns a 2011 dividend of $23.5 million to be paid to qualifying policyholders. Once distributed, this brings LWCC’s cumulative total dividend paid to policyholders over the past nine years to $182,796,520.
LWCC is presented on April 20 with the Louisiana Bar Foundation’s (LBF) Horn Blower Award in recognition of its continued support and outstanding leadership as a preeminent partner in the LBF Kids’ Chance Scholarship Program.
July: A.M. Best reaffirms LWCC’s financial strength rating of “A” (Excellent) for the eleventh consecutive year.
October: LWCC marks its 20th year in business on October 1. The private, nonprofit, mutual insurance company is the largest workers’ compensation insurer in the state, covering about 17,000 policyholders in the state.
April: LWCC’s board of directors declares a 2012 dividend of $48.7 million to be paid to qualifying policyholders. Once distributed, this brings LWCC’s cumulative total dividend over the past ten years to more than $231 million.
A.M. Best reaffirms LWCC’s financial strength rating of “A” (Excellent) for the twelfth consecutive year.
September: The LWCC-Kids’ Chance Invitational Golf Tournament celebrates its tenth year of raising money for the Louisiana Bar Foundation’s Kids’ Chance Scholarship Program.
A new corporate initiative, APEX—which stands for agency partnership experience—is hosted by LWCC’s agency relations team. The overall objective of the event is to create an experience offering up-and-coming independent insurance agents access and interaction with LWCC executive management and underwriting and claims managers, as well as provide an educational forum to learn about LWCC’s offerings for their clients.
March: LWCC’s board of directors declares a 2013 dividend of $69.1 million to be paid to qualifying policyholders. Once distributed, this brings LWCC’s cumulative total dividend over the prior eleven years to more than $300 million.
LWCC’s corporate wellness program, Wellwcc, is awarded first place in the 26th annual Providence Corporate Cup Corporate Wellness Award competition. The Corporate Wellness Award is presented to an individual, company, or organization that is a “pacesetter” in the area of corporate wellness in the Greater Baton Rouge community. “Corporate wellness” is defined as the promotion of healthier lifestyles and includes corporate wellness programs and physical fitness programs.
April: For the thirteenth consecutive year, LWCC’s financial strength rating of “A” (Excellent) is reaffirmed by A.M. Best.
October: LWCC is nominated for and wins the Better Business Bureau’s Douglas Manship, Sr. Torch Award for Ethics in Business. The annual awards recognize four businesses in different employee size categories. These businesses demonstrate a superior commitment to exceptional standards that benefit its customers, employees, suppliers, shareholders, and surrounding communities.
LWCC announces and mourns the death of founding board member Aubrey T. Temple, Jr. He served as the founding chairman of LWCC’s board of directors, a position he held for twenty years. Temple was named chairman emeritus in 2012 and continued his board service until the time of his death.
January: Providence Corporate Cup, an annual run/walk in which participants from hundreds of companies in the Greater Baton Rouge area come together to celebrate corporate wellness, camaraderie, and community fellowship, chooses LWCC as its 2015 Wellness Ambassador. The Providence Corporate Cup Wellness Ambassador is a person or organization that advocates lifestyles dedicated to fitness and wellness.
April: LWCC pays out a 2014 dividend of $93.7 million, for a cumulative total of $394 million returned in 12 years. Breaking a company record for the third-consecutive time, this dividend marks LWCC’s highest to date.
June: LWCC is named to the 2015 Ward’s 50 group of top-performing insurance companies. Ward Group is the trusted leader of bench marking and best practices services for the insurance industry and analyzes over 3,000 property-casualty insurance companies domiciled in the United States to identify top performers.
October: The twelfth annual LWCC Kids’ Chance invitational golf tournament raises $31,000 for the Louisiana Bar Foundation (LBF) Kids’ Chance Scholarship Program. Since its inception, the LWCC golf tournament has raised over $371,000, which has contributed to 235 scholarships totaling $459,600 awarded to LBF Kids’ Chance scholarship recipients.
March: LWCC’ board of directors declares a record dividend for 2015. The following month, LWCC distributes a $94.5 million dividend, the company’s largest to date, to more than 18,600 qualifying policyholders. This marks the 13th consecutive year LWCC issues a policyholder dividend, bringing the cumulative total returned to more than $489 million.
June: A.M. Best reaffirms LWCC’s financial strength rating (FSR) of “A” (Excellent) and issuer credit rating (ICR) of “a+.” This marks the 14th consecutive year LWCC earns an “A” rating from A.M. Best.
July: LWCC is named to the 2016 Ward’s 50 group of top-performing insurance companies. Ward Group is the trusted leader of benchmarking and best practices services for the insurance industry and analyzes nearly 3,000 property-casualty insurance companies domiciled in the United States to identify top performers. LWCC is recognized for achieving outstanding financial results in the areas of safety, consistency and performance over a five year period, 2011–2015. This is the 10th time since its inception that LWCC has been recognized with this honor.
March: LWCC’s board of directors declares a 2016 policyholder dividend of $90.7 million to be paid to qualifying policyholders. This marks the 14th consecutive year LWCC issues a policyholder dividend, bringing the cumulative total returned to more than $576 million.