© Disney 2013

Workers’ Compensation at The Walt Disney Company

National Council of Self-Insurers

May 20, 2013

© Disney 2013

The Walt Disney Company

The Walt Disney Company

MediaNetworks

2012Revenue:

$19.4B USD

Theme Parks and

Resorts2012 Revenue:

$12.9B USD

ConsumerProducts

2012Revenue:

$3.3B USD

StudioEntertainment

2012Revenue:

$5.8B USD

Interactive Media

2012Revenue:

$845M USD

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Strategic Direction and Alignment

Profit Center ManagementCorporate

Risk Management

Corporate Insurance

Studio/Corp Safety

ABC Risk and Environmental

WDW Risk Management

Disneyland Risk Management

ABC SportsABC Owned and Operated

Stations

ESPN World wideBroadcasting

International Development

ABC Broadcast Operations

Disney Regional Entertainment

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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

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Self-insured WC Claims

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Claims OrganizationTheme Parks: • Self-insured in California• Self-insured in Florida• Self-administered by local Disney teamAll Other BU’s: • High-deductible 3rd party insurance• Primary in Disney captive• Administered by TPA

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Claims Organization

Formed January ‘03 for:• Workers’ Compensation• General Liability• Auto Liability• Other coverages

TPA is overseen by corporate RM staff

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Claims Organization

Four tiers of “insurance”:• 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

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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

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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

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Delivering Medical Care• On-site medical and occupational

clinics• Medical provider networks• Effective case management• Controlling pharmacy costs• Physical therapy and athletic trainers

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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

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Integration with SafetyLoss prevention, loss control and risk management must work together to achieve success

Safety, Industrial Health and

Fire and Property Protection

Professionals

Risk Management and Insurance

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

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