Workers’ Compensation
at The Walt Disney Company
National Council of SelfInsurers
May 20, 2013
© Disney 2013
The Walt Disney Company
The Walt Disney Company
Media
Networks
2012
Revenue:
$19.4B USD
Theme Parks
and
Resorts
2012 Revenue:
$12.9B USD
Consumer
Products
Studio
Entertainment
Interactive
Media
2012
Revenue:
$3.3B USD
2012
Revenue:
$5.8B USD
2012
Revenue:
$845M USD
© Disney 2013
Corporate
Risk Management
Strategic Direction
and Alignment
Corporate
Insurance
Studio/Corp Safety
Profit Center
Management
WDW Risk
Management
Disneyland Risk
Management
International
Development
Disney Regional
Entertainment
ESPN World wide
ABC Broadcast
Operations
Broadcasting
ABC Risk
and Environmental
ABC Sports
ABC Owned
and Operated
Stations
© Disney 2013
Primary Workers’
Compensation Concerns
Theme Parks & Resorts – Over
95,000 Cast Members
Media Networks – News, sporting
events and broadcasting support
Consumer Products – Retail
stores and distribution centers
Studio Entertainment – Motion
picture and television production
© Disney 2013
Self-insured WC Claims
© Disney 2013
Claims Organization
Theme Parks:
• Self-insured in California
• Self-insured in Florida
• Self-administered by local Disney team
All Other BU’s:
• High-deductible 3rd party insurance
• Primary in Disney captive
• Administered by TPA
© Disney 2013
Claims Organization
Formed January ‘03 for:
•
•
•
•
Workers’ Compensation
General Liability
Auto Liability
Other coverages
TPA is overseen by corporate RM staff
© Disney 2013
Claims Organization
Four tiers of “insurance”:
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•
•
•
•
Guaranteed cost for smaller business units
Three levels of retro plans for larger businesses
Evaluated within 1st year and adjusted
Motivates safety and loss reduction
Degree of self-insurance tied to capacity of the
business unit to bear the risk
© Disney 2013
Key Claims Practices
Across all claims administrators:
•
•
•
•
•
Early contact and communication
Return to work
Delivery of medical care
Financial responsibility
Integration with safety and loss control
© Disney 2013
Return-to-work
• The best result for both the injured
worker and employer
• Requires a clear understanding and
documentation of job requirements
• “Recovery at Work” philosophy with
restriction management
• Communication and dialogue are
essential
© Disney 2013
Delivering Medical Care
• On-site medical and occupational
clinics
• Medical provider networks
• Effective case management
• Controlling pharmacy costs
• Physical therapy and athletic trainers
© Disney 2013
Financial Responsibility
• Develop and apply a clear reserving
philosophy
• Estimate the probable future costs for
benefits that may be due
• Maintain consistency
• Engage the actuarial consultants
• Drive costs to the profit center
© Disney 2013
Integration with Safety
Loss prevention, loss control and risk management must
work together to achieve success
Claims Management and
Service Teams
Safety and claims teams
exchange information
about losses and possible
prevention
Effective claims
management reduces
insurance costs and
improves the program
Safety, Industrial Health and
Risk Management
and Insurance
Fire and Property Protection
Professionals
Effective safety programs
attract more competitive
insurers and lower
premiums
© Disney 2013
Workers’ Compensation Team
You can design and
create, and build the
most wonderful place in
the world. But it takes
people to make the
dream a reality.
Walt Disney
© Disney 2013
The End
© Disney 2013