Going Retro: A Decade of GRIP
GRIP is the go-to retro resource for builders across King, Snohomish, and Pierce counties. For ten years, the program has navigated the Washington State Department of Labor and Industries (L&I) system to help employers manage their workers’ compensation claims, lower their L&I premiums, and net larger retro refunds. Since its founding on July 1, 2010, the the Group Restrospective Insurance Program, or GRIP, has sought to provide a higher level of claims management, customer service, and refunds than competing retro programs. This year, the program refunded over $15.4 million to more than 1,300 participating companies. From July 1, 2019 to February 29, 2020, GRIP lowered total worker’s comp claims by 16%, claims costs by 9%, and time loss days paid out by 29%. These kinds of results, along with high-quality service, have made GRIP distinctly popular during its decade-long journey. Before COVID-19 put a hold on in-person events, the program’s annual check distribution barbecue was one of MBAKS’ liveliest and most well-attended social gatherings.
What Is Retro?
By retro, we don’t mean the eighties stylings of Stranger Things. We mean retrospective ratings plans for workers’ compensation. Retro rating programs are set up so that the final premium paid is based on actual losses incurred during the policy period. L&I’s retro program incentivizes safety by allowing companies to earn partial refunds for their workers’ compensation premiums if they reduce workplace injuries and related claim costs. GRIP helps its members navigate this process.
A GRIPPING ORIGIN STORY
MBAKS Product Manager Kevin McDaniel recently joined me to talk about the history of the program. He explained that since 1984, MBAKS had referred members to BIAW’s statewide retrospective insurance program, but in 2010, the association decided to launch its own retro program, with the goal of offering members the best possible service.
MBAKS worked with MBA Pierce and Approach Management Services—a leading third-party retro administrator—to establish the program and its compelling acronym, GRIP. Approach Management Services handled much of the administrative work for nearly a decade.
Since the beginning, GRIP has grown at a brisk pace. In 2010, the program enrolled 699 members with a total standard premium of $14.8 million. By 2018, it had enrolled 1,207 with a standard premium of $56.2 million. Over the life of the program, GRIP has refunded over $72 million to participants, with an average refund percentage of 29.7%. The average for all retro participants in the state over the same 2010–18 period? Just 21.7%.
Over the years, GRIP has offered a wide spectrum of complementary services, from Return to Work programs to site safety assessments and health care consultation, to help members maintain safe work sites, stay L&I compliant, and bring employees safely back to work (turn to page 37 for their quarterly site safety article). These services not only help managers and workers, but also lower premiums, reduce citations, and prevent onerous fines.
INNOVATION IS KEY
McDaniel said of GRIP, “We are always looking for ways to improve the program, and we’ve made a lot of adjustments over the years.” One major shift happened right out of the gate due to a significant change in how L&I calculated retro refunds.
“In 2010, refunds were largely shaped by the group’s total premium, but starting in 2011, L&I adjusted their formula and placed more
emphasis on the loss ratio,” or claims cost versus premium. “Before that, GRIP had no underwriting requirements and focused enrollment on increasing the total premium.”
“ERNwest has infused new energy and ideas into the program.”
After the change, GRIP instituted underwriting standards requiring participants to be much more proactive in managing claims. “Changes like these,” said McDaniel, “have kept retro programs like GRIP on our toes and forced us to innovate.”
In this spirit, GRIP has continued evolving to meet the needs of its participants. Last year, GRIP contracted with a new third-party administrator, Employer Resources Northwest (ERNwest), to update and manage the ins and outs of the program.
ERNwest’s CEO, John Meier, said he looked forward to bringing the company’s high level of expertise and customer service to help GRIP members realize their full potential. The impact was immediate. During ERNwest’s first year, GRIP recruited 96 new participants and brought $3.65 million into the program. McDaniel says the best may be yet to come.
“Because of the way L&I calculates refunds, it takes about two years to see any changes due to new program developments, but ERNwest has infused new energy and ideas into the program.”
EVERY STEP OF THE WAY
Innovation and adaptability are key to GRIP’s long-term outlook; the program has always worked to find new ways to help participants
achieve the best possible results. Even a pandemic can’t slow down its evolution. Not long after the full extent of COVID-19 became clear, GRIP staff were already busy adjusting the program’s priorities to best serve its participants.
As soon as the homebuilding industry was given the go-ahead by Governor Jay Inslee to begin construction again, GRIP distributed a COVID for Construction Guide, a toolkit that outlined new OSHA jobsite requirements and helped homebuilders stay L&I compliant during Phase 2. This is just one example of GRIP’s commitment to doing right by its members and earning their loyalty.
For McDaniel, the program’s appeal is clear. “GRIP has been at the forefront of retro, adapting every step of the way, and I fully expect that to continue into the foreseeable future. Along with the MBA Health Trust, GRIP is one of the main motivators for prospective MBAKS members to join MBAKS, and a big reason for
why they stay.”