Agent News

Angle Q2 2018

Winning the Customer Service Game – Three Questions with Scott Babcock

Hear from 3CU Vice President of Customer Operations and Loss Control about how we deliver superior customer experiences, from kickoff meetings to all-hands-on-deck account management sessions.

How does 3CU outperform the industry from a customer service standpoint?

SB: Quite simply, we keep our promises and deliver superior execution. I know most companies say that, but we truly are a partnership-based company. To achieve best results, we want customers to be as involved as possible. We encourage it. The same goes for our brokers – we ensure that the way we serve customers is done in partnership with the broker and that our service platforms are running parallel.

It starts with our underwriting team working closely with broker partners long before we receive a submission. We continually educate our brokers about why we believe 3CU is different and how we drive better results for insureds – with programs like kickoff meetings and account management processes.

Each insured is provided with a dedicated claims adjuster to handle all claims needs, and we cap our adjusters at 125 cases so we can proactively manage the process, not just administer it. We believe strongly in providing injured workers with the best medical treatment possible, which is why we use outcomes-based analytics to identify the most appropriate medical providers. Unfortunately, fraudulent claims are a reality in our business. We diligently fight fraud on many levels, with proven techniques and an in-house investigative unit.

What’s the advantage of 3CU kickoff meetings?

SB: Within the first 60 days of writing a policy, we conduct a kickoff meeting to get broker partners and policyholders on the same page. We make sure we understand an insured’s operation from a best practices perspective and drive home our loss control processes. It’s where we integrate our service team to make sure there are no gaps in servicing throughout the policy year.

It’s where we make sure we understand our customer and that they understand our processes. It’s a successful way to establish expectations and make sure there are no surprises. We also address operational differences. For example, trucking claims are reported differently than construction claims. We walk through these sorts of things at each kickoff meeting.

On top of that, we teach insureds about our robust risk management information system, which provides advanced analytics and account management capabilities for them and agents. Finally, we establish our loss control service plan to offer the most effective results for customers. At the end of that day, our focus is on material customer improvements.

How do quarterly account management (QAM) meetings improve accounts?
SB: Once a quarter, 3CU staff discusses customers’ account performance. The discussion involves a customer’s assigned claims, underwriting and loss control reps, regional director and a member of the executive team. These QAMs are our proven way to create coordinated communication between all departments, identify any servicing issues and share true solutions with customers and brokers. We review account metrics for positive or negative trends, find ways to improve or add value, and begin real implementation of solutions while everyone is in the room. It’s a system we’re continually improving, as our goal is to be as effective as possible.

These high-touch programs allow us to maintain strong partnerships with both customers and brokers. To learn more about our approach, and how we partner with brokers to achieve successful outcomes, contact your 3CU business development consultant.

New Video: Pre-Loss Claims Approach

Visit our website to check out a new video highlighting 3CU’s approach to controlling costs and managing claims before they occur. It’s the second in a four-part video series that helps explain our claims approach — from policy inception to claims difficulties and resolution.

Find more videos at

What We Write

At Third Coast Underwriters (3CU), our customers are our top priority. Because we specialize in addressing complex operations and challenging exposures, we know the importance of developing unique workers’ compensation solutions. The list below illustrates the varied mix of accounts we have written recently within our core segments. Let us help you deliver successful outcomes for your customers today. For more information, visit, email or call 866-641-2328.


Artificial Insemination of Cattle – All Other Employees $765,800
Contractors Machinery Dealer & Drivers $413,000
Farm: Cattle or Livestock Raising Noc & Drivers $754,700
Farm: Dairy & Drivers $307,300
Farm Machinery Operation – By Contractor & Drivers $407,300
Farm: Poultry or Egg Producer & Drivers $345,400
Florists – Cultivating or Gardening $161,700
Hay, Grain, Feed or Fertilizer – Dealers, Local Managers & Drivers $158,900 – $172,300
Landscape Gardening & Drivers $170,700 – $717,000
Sawmill $1.8M
Store Meat, Fish or Poultry Dealer $157,700


Boiler or Steam Pipe Insulating & Drivers $246,000
Buildings – Operation by Contractors $353,300
Cable Installation & Drivers $185,700
Carpentry – Installation of Cabinet Work or Interior Trim $195,200 – $272,600
Carpentry Noc $150,200
Cleaning or Renovating Building Exteriors $1,470,600
Clearing of Right-of-Way – Electric, Power $193,900
Cofferdam Work – Not Pneumatic – All Operations to Com $280,300
Concrete Construction $233,300 – $343,300
Concrete or Cement Work $150,500 – $444,000
Concrete Products & Drivers $993,700
Conduit Construction – For Cables or Wires & Drivers $242,400 – $574,800
Contractors Machinery Dealer & Drivers $252,200
Crane Rental – Operators & Drivers $321,700
Electrical Wiring – Within Buildings & Drivers $155,800 – $386,600
Excavation & Drivers $207,100
Fixtures or Furniture Installation – Portable Noc $463,400
Gas Main or Connection Construction & Drivers $241,100
Glazier – Away from Shop & Drivers $164,700
HVAC & Refrigeration $196,300 – $300,100
Household & Commercial Appliances – Electrical $182,600 – $276,600
Janitorial Services by Contractors – No Window CLE $716,200
Machine Shop NOC $305,500
Masonry $244,900 – $333,200
Painting Noc & Shop Operations, Drivers $162,100 – $257,600
Plumbing Noc & Drivers $158,200 – $501,300
Railroad Construction $264,500 – $759,100
Rock Excavation & Drivers $1,098,800
Roofing – All Kinds & Drivers $476,000 – $489,900
Scaffolding Installation, Repair or Removal – Built $165,400
Sheet Metal Work – Installation & Drivers $158,600
Sign Installation, Maintenance, Repair or Removal & Drivers $202,400 – $274,500
Street Cleaning & Drivers $262,000
Street or Road Construction $159,600 – $811,400
Wallboard, Sheetrock, Drywall, Plasterboard $167,300 – $217,500
Water Main or Connection Construction & Drivers $228,700


Automobile Service or Repair Center & Drivers $888,900
Rubber Tire Dealers $1,478,600
Scrap Dealer & Drivers $179,700 – $724,100


Oil or Gas Refining Units – Erection or Repair & Drivers $237,100 – $272,600
Oil or Gas Well – Cementing & Drivers $166,400
Trucking – Employees & Drivers $244,800 – $306,400


HVAC and Refrigeration Systems – Installation & Service $945,500
Tank Building – Metal Shop $371,500



Ashes, Garbage or Refuse Collection & Drivers $282,300
Automobile Haulaway or Driveway – Long Distance $818,200
Beer or Ale Dealer $1,580,700
Building Material Dealer – New Materials Only $511,700
Bus Company – All Other Employees & Drivers $150,800
Coffee Service Companies – All Operations & Salespersons $904,700
Contractors Machinery Dealer & Drivers $166,800
Furniture Moving & Storage, Drivers $190,000
Garbage Ashes or Refuse Collections & Drivers $257,300
Gasoline Dealer & Drivers $436,700
Gasoline Station – Noc – Retail & Drivers $289,700
Storage Warehouse – Furniture & Drivers $370,200
Store – Wholesale Noc $199,700
Trucking $176,600 – $1,053,000
Trucking – Long Distance Hauling $254,000 – $1.9M
Legislative Update


The governor recently signed workers’ compensation reform House Bill 2. Kentucky Department of Insurance recently approved NCCI’s advisory loss cost filing relating to House Bill 2. The filing reflects an overall decrease of 5.3% from the most recent filing that became effective Oct. 1, 2017, with a proposed effective date of July 14, 2018. The majority of NCCI’s decrease can be attributed to a portion of the legislation that in all but the most serious PPD claims, terminates the employer’s obligation to pay medical benefits after 780 weeks (15 years) from the date of injury or last exposure. Positive portions of the bill initiated by the industry are the implementation of a drug formulary and creation of an evidence-based medical fee schedule.


The proposed workers’ compensation reform package, which included a medical fee schedule and was endorsed by the state Workers’ Compensation Advisory Council (WCAC), was introduced in the form of SB 665 but faced very strong opposition from the hospitals and did not progress. It was a very difficult time to move such a proposal because of it being an election year, compounded with a very short legislative session. 2019 not being a major election year statewide in Wisconsin, may possibly increase the likelihood of a proposal gaining more traction. AF Group will remain engaged throughout the process.


Positive workers’ compensation drug formulary legislation SB 369 has been signed into law. This formulary will protect workers by addressing the appropriate utilization of all FDA approved medications and limit compound medications within the workers’ compensation system. Except during a medical emergency, the bill prohibits workers’ compensation and occupational disease compensation reimbursement for drugs not specified in the ODG Workers’ Compensation Drug Formulary.


Summary – SB 1737, which contains workers’ compensation rate approval language — and a portion that carriers cannot adjust discretionary rating upward of more than 5% without sending 30 days notice to policyholders/agents — passed the legislature and awaits consideration by the governor. AF Group doesn’t view the change to prior approval for the rate process as an extremely significant issue because we execute prior approval in numerous other markets. The rating notices is a concern and will initiate the development of new processes internally and externally to comply. AF Group will take steps to produce an effective communication process with agents and insureds that aims to reduce confusion.

Specific Detail Regarding Notices – All workers’ compensation policies issued, delivered, amended or renewed require the insurer to provide notice to the policyholder and to the authorized agent its intention to renew where the premium will result in excess of 5% above the rate recommendation filed with DOI (less increased loss costs, experience rating, etc.). Such notice is to be provided at least 30 days before expiration of the policy and must indicate: 1) the amount of premium increase or an estimate; and 2) the reason for the increase in premium above the rates recommended to DOI. All policies currently in force today will have to comply with this new law as of Jan. 1, 2019. Jan. 1 renewals, which increase rate as defined in the bill, will require notices by Dec. 1, 2018.