Comp Quotes | Fall 2021

Payroll inflation factor to increase

Effective January 1, 2022, voluntary market policies will be renewed with a 5% payroll inflation factor. The inflation factor increases payroll to account for expected wage growth and is based on historical average payroll growth for SAIF policyholders and Oregon economic data. The pandemic and ensuing economic recession had a significant impact on payroll for many businesses in Oregon, so SAIF reduced the inflation factor to 0% starting in June 2020.

Our agency partners play a critical role in ensuring that we have accurate payroll estimates so premium can be calculated and charged correctly on our installment billing plans. If you provide us with estimated payroll figures, we will use that information and override the inflation factor. This will also stop re-estimates based on audited payroll received after the policy term begins.

NOTE: The payroll inflation factor does not apply to Assigned Risk policies.

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Delta variant leads to temporary changes in claim assignments

The recent spike in Delta variant cases and COVID-19 claims across Oregon has led SAIF to temporarily change the way we assign these claims.

When large workplace outbreaks occur, claims are distributed among several claim professionals. This “load-leveling” means employers may be contacted by claims staff that they haven’t worked with in the past. We hope this is a temporary measure that will no longer be required as cases across Oregon begin to decline.

Through June and most of July 2021, SAIF averaged about 6.5 claims a week. In August, the average weekly number of claims climbed sharply, to 110. The peak number of weekly claims in August reached 161 (between August 21 and 27). It’s fair to say that Delta changed everything.

How are COVID claims handled?

Recognizing early on that the pandemic would be a large and unique challenge, SAIF created a small team of senior technical adjusters devoted to handling COVID-19 claims and developing best practices for working up decisions and managing those claims. These best practices are now used as a template for all claims staff when receiving COVID-19 claims. SAIF claims staff conduct a comprehensive investigation to evaluate all work and off-work exposures. When necessary, claims staff seeks out medical and legal opinions to help ensure timely, fair, and accurate decisions.

Please visit saif.com for more resources on COVID-19 claim management and safety measures employers can take.

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Sign-on bonuses

With all the changes that have taken place over the past year regarding how and where people perform their work, the job market is more competitive than ever, and in new ways. Previously, the job market had far more candidates than openings. Now, it’s a candidate’s market where there are more openings than applicants. This has forced employers to make changes in their hiring practices to stay competitive in retaining and hiring top talent. These changes include flexibility in work/life balance options, remote work offerings, increased compensation, and an increase in incentives. 

Specifically, we’re seeing an influx of industries using sign-on bonuses as incentive to attract potential workers. With this comes questions on how to report this pay for workers’ compensation purposes.

A sign-on bonus is considered an “anticipated bonus” in regard to payroll reporting. These bonuses are offered as a form of compensation, usually part of a written agreement, and the employer is obligated to pay it once the conditions have been met by the employee. In Oregon all anticipated bonuses are includable as subject payroll. As these bonuses are not tied to time worked, they should be reported to the employee’s normal classification. If the employee can be included in more than one classification, these payments should be divided and allocated among the classifications, provided verifiable payroll records are maintained.

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Atlas Initiative | NCCI releases Oregon-specific Basic Manual

The National Council on Compensation Insurance (NCCI) approved a revised Basic Manual, specific to Oregon, that combines the national rules and the Oregon state special rules into a single resource. As part of their overarching Atlas Initiative, NCCI will publish state-specific Basic Manuals for all states with the same format. The new Oregon manual will be available November 1, 2021.

The Oregon manual features comprehensive content, in-depth rule explanations, and, to quote SAIF’s in-house NCCI expert, Michele Summerlin, “vastly improved search functionality.”

The new manual fixes longstanding user concerns, including limited search functionality and the need to cross-reference the Oregon and national manuals. Also, the new numbering system and enhanced illustrations provide a consistent, easy-to-follow flow for users.

SAIF will offer agent training on major elements of the Oregon manual, so look for training dates and times coming soon.

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A reminder about SAIF's broker-of-record process

SAIF has streamlined the broker-of-record process to allow for a smooth transfer of policies between brokers.

To start the process, please make sure that the broker change request meets the criteria below.

• The letter must be on the client’s letterhead; if there is no letterhead make sure that the name and address of the policy are printed on the request.
• The letter must state that the employer intends to appoint the broker as the exclusive broker of record, and either be dated or include a requested effective date.
• The letter must include the employer’s name and policy number.
• The letter must be signed by an owner, corporate officer, or authorized representative. Be sure to include the clearly printed or typed name and title of the person who signed (below the signature).

Once all the above criteria are met, you may email it to brokerofrecord@saif.com, fax it to 503.584.9053, or mail it to SAIF, 2 Centerpointe Drive, Suite 400, Lake Oswego, OR 97035.

After the broker request has been received, the incumbent agent will be notified and will have five business days to obtain a superseding letter. When the waiting period is complete, and no superseding letter has been received, the policy will be transferred to the new agent. A confirmation will be emailed to the person who requested the broker change.

All of the broker-of-record criteria is located in our Agent Guide > Broker of record information (saif.com). Additional information about commissions following a broker, effective dates, and additional contacts to become appointed with SAIF are outlined on this page as well.

If you have questions, please email us at brokerofrecord@saif.com.

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Claims division to implement new system

Over the past 15 years we've built a claims system from the ground up to meet specific requirements and workflows. Maintaining a customized system like this was not a long-term strategic option for SAIF, and if we didn’t upgrade our outdated systems, we were at risk of them failing and not being able to serve our customers. 

To modernize our system, the claims and information technology (IT) divisions partnered to find a technology solution that would be sustainable and flexible and enable the claims division to provide the best outcomes for workers and policyholders. After reviewing third-party systems and the amount of effort that it would take to rebuild our current system, they decided that building a core system was not a sustainable option, and that ClaimCenter by Guidewire was the best fit.

Since February, multiple SAIF employees, from both claims and IT have been learning more about ClaimCenter and partnering with outside consultants to fine-tune the requirements we need in our future system. We are currently working on development and have a goal of implementing ClaimCenter later in 2022. We’ll provide you with updates as our efforts progress.

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Billing and invoicing improvement project begins

To improve both the customer and agent experience with SAIF, we’ve been busy working on future enhancements to our current billing and invoicing processes.

This fall, the SAIF IT team will kick off a project to create a more streamlined experience for policyholders. It’ll provide greater clarity regarding transactions on invoices, account balances, and when their payments are due to SAIF. We expect improved billing and invoice processes to be fully implemented in late 2022. As we get closer to implementation and release of the new processes, we will share a full overview with you.

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Upcoming agent trainings

Remember that we have an ongoing schedule of trainings for you. Most have CEC credits. These are happening in the next couple months:

• Safety committee leaders unite! | 1 CEC hour pending approval
• Claim basics | 2 CEC hours approved
• Beyond claim basics | 2 CEC hours approved
• Evaluating your safety and health program: Building a foundational culture | 1 CEC hour pending approval
• Getting into the weeds of cannabis and hemp | 1 CEC hour approved