DANA POINT, Calif. — Risk managers can influence the actuarial reports that affect their company’s bottom line by educating their actuaries and implementing favorable claims management practices, risk managers said.
Kurt E. Leisure, vice president of risk services/assets protection for The Cheesecake Factory Inc., said his actuarial report, shared with the company’s chief financial officer, serves as a grading of his workers comp claims management efforts.
“My actuary report is really my report card,” Mr. Leisure said. “At the end of the day, it’s a reflection of all the efforts that I have put in place throughout the year and the outcome.”
The reports grab upper management’s attention because they affect a company’s bottom line by determining how much will be spent on expenses such as the letters of credit used to back a large employer’s workers comp risks, he and other speakers said during the California Workers’ Compensation & Risk Conference.
The gathering was held Oct. 1-4 in Dana Point, Calif.
“When I am talking to my CFO, he does not want to know about return-to-work programs and reserving and all of that,” Mr. Leisure told conference attendees.
“He just looks at the actuary numbers. That is what we use to post our letters of credit. That is the bottom line for him,” Mr. Leisure said.