ProClaim Inside the World of Claims Adjusting Fall/Winter 2014 Property Priority In the wake of record catastrophic claims, insurers in key regions of Canada are changing their approach to personal and, to a lesser extent, commercial property insurance. Coverage terms are constricting, sub-limits are being introduced, deductibles are increasing and rates are rising, especially for water damage losses. Adjusters are seeing several policy amendments on the front lines of claims handling. On water damage specifically, we are receiving notifications from a number of insurers regarding some tightening of wordings and reduced sub-limits, and we are hearing indirectly from brokers and insureds about increased deductibles and premium increases, says Jim Eso, senior vice president, Property & Casualty, Crawford & Company (Canada) Inc. Sub-limits will likely have the biggest impact. If someone s deductible goes up from $1,000 to $2,500, it won t necessarily influence their decision to buy coverage or perhaps to change insurance companies. However, an imposition of a $15,000 sub-limit on basement water claims is a significant issue for someone who has a home theater in their basement, he adds. In general, underwriters are trying to determine and limit their exposures, particularly for water damage and sewer back up losses. Many insurance companies have already sent out notices of policy changes on renewal of personal property policies. Eso notes that policy changes involve both water damage and hail, particularly in Western Canada (Prairies and Alberta). On the latter front, homeowners insurance for older roofs may be subject to depreciation instead of replacement cost coverage. There s little doubt that the frequency and severity of large severe weather loss events is on the rise. The property and casualty insurance industry has been pointing to telling statistics of property-related claims growth over the past decade. From 1983 to 2008 25 years yearly natural catastrophe losses in Canada averaged around $400 million. Over the next four years, they hovered around $1 billion each year. Then came 2013 the year of the Continued on page 6... Inside: 2 The Evolution of the IME 3 Workers Compensation: a New View for the Canadian Risk Manager 4 Business Interruption Financial Statements and Beyond 5 Financial Results 7 Onwards and Upwards
The Evolution of the IME The Independent Medical Evaluation (IME) process has changed dramatically in recent years. Providers have evolved to offer best-in-class medical examination techniques and consistent service standards, reinforced by third-party accreditation. IME providers are under greater pressure than ever to be unbiased, neutral and professional third party evaluators, notes Kelly Stevens, assistant branch manager, Crawford & Company (Canada) Inc. They have an obligation to prepare a report based on the examination of an injured party and a review of all medicals received from both the insurer and the insured. Their approach should be balanced, open minded and transparent. These goals are coming into sharper focus as industry demands and new regulatory requirements are upping the ante for IME providers to respond. Since the disbanding of the Designated Assessment Centre (DAC) system in Ontario in 2005, there has been a proliferation of IME providers in the province a development generally mirrored across Canada. A unique combination of industry trends and evolving regulation is putting more pressure on the IME sector. For many medical firms, revenue growth in recent years has been substantially affected by rules that govern the levels of benefits payable to claimants and the extent to which medical assessments are required. In Ontario, changes were introduced in 2010 to the Statutory Accident Benefits Schedule (SABS) that stipulate the terms of accident benefits coverage in the province. The legislative reforms left many smaller IME companies unable to accommodate complex referrals without undermining profitability. This is still particularly true in areas such as the Minor Injury Guideline in Ontario, which sets limits on how much can be charged for IMEs. In addition, the Financial Services Commission of Ontario (FSCO) requires IME firms to obtain a service provider licence to invoice insurers as of December 1, 2014. These changes have resulted in increased pressures on the IME providers, as well as an increased cost of doing business. Stevens...there has been heightened pressure on medical firms and insurers to demonstrate that the IME process is impartial and independent. notes. They have to do more with less. They are required to produce better reports, faster and ultimately at a lower cost. These are challenging times indeed for these service providers. The current trend is towards bigger, full-service firms in the IME sector. This has led to the consolidation of the once independently owned and operated companies into larger operations where they can better leverage their resources to continue providing quality reports in today s environment, Stevens observes. At the same time, there has been heightened pressure on medical firms and insurers to demonstrate that the IME process is impartial and independent. The Ontario Auto Insurance Anti-Fraud Task Force report, tabled in November 2012, looked at key areas of the auto insurance environment. The report made several recommendations for the IME process and health care, including: Professional standards and training for assessors, in conjunction with regulatory health colleges, should be required to allow evidence-based practices to guide assessments in an independent, fair and cost-effective manner; Insurers should be required to publicly disclose how they choose and assess the business and the performance of medical assessment professionals; and The business practices of health care clinics that treat and assess auto insurance claimants should be licensed and regulated. Many of these recommendations have been incorporated into Bill 15, the Ontario government s Fighting Fraud and Reducing Automobile Insurance Rates Act, expected to pass in the fall of 2014. Additionally, the Ontario Automobile Insurance Dispute Resolution System Review, which was released in February 2014, Continued on page 8... 2 ProClaim Fall/Winter 2014
Workers Compensation: a New View for the Canadian Risk Manager Why should a Canadian risk manager look at their workers compensation portfolio? The biggest reason is that workers compensation insurance can amount to the largest piece of risk within a company s whole portfolio, however, it is common for Canadian risk managers to treat it differently than other traditional risks. Workers compensation claims are typically the responsibility of Human Resources or Health and Safety departments and, as such, they are not part of an integrated risk management portfolio. Workers compensation risk is manageable, and assessing this risk should start with a review of your quarterly provincial financial statements. Advises Heather Matthews, SVP, National Claims Management Centre at Crawford & Company (Canada) Inc. According to Matthews, when looking at these statements...workers compensation costs in Canada should not be treated as a payroll tax they are a cost that can be controlled and significantly reduced... it is important to identify trends within your claim history. More specifically, you will want to look for claims that are driving costs. You may also want to look at options for claims mitigation strategies, as well as assess the effectiveness of existing strategies. As time away from work is the largest cost driver of workers compensation costs, it is imperative to review your company s return to work processes and procedures, as well as verify if they are being followed consistently. You may also want to consider allocating associated workers compensation costs to cost centres within your company to provide departmental incentives for below normal claims costs. While the analysis of quarterly provincial financial statements is typically completed on your traditional risk portfolio, it should become common practice for your workers compensation portfolio. It is important to remember that workers compensation costs in Canada should not be treated as a payroll tax they are a cost that can be controlled and signifi cantly reduced with similar claims and risk management strategies that are engaged with other insurance risk. Crawford s Human Risk Services division employs registered healthcare professionals and claims management experts who have significant experience in managing workers compensation claims and achieving signifi - cant cost reductions for its clients. Matthews explains. Some of the main cost mitigating strategies that they utilize include: Professional review of claims to identify opportunities for cost relief within each of the provincial and territorial workers compensation boards Appealing claims decisions with expert legal support Establishing and executing successful offers of modified and regular return to work plans Companies like Crawford can help clients achieve hundreds of thousands of dollars in savings on their workers compensation portfolios. Matthews offers an example, Within one year of partnership with Crawford, our assistance allowed one of our clients to move from a $489,000 surcharge situation to a $570,000 rebate position by engaging successful return to work practices and onsite training that were aligned with many facets of the client s operations. She goes on to explain that Crawford s partnership and client base is dynamic and far-reaching, with representation from many industry sectors such as manufacturing, retail, transportation, food services and construction. This gives Crawford the experience necessary to understand and affect change in the most efficient and constructive ways. Crawford is also able to assist with workers compensation claims program improvements by offering the following services: Full first notice of loss services to include workers compensation, disability and casual absences with customized scripts and statistical reporting and analysis Tracking and reporting tools that identify trends and suggest proactive measures Developing RTW programs that conform with provincial legislation and best practices Implementing injury prevention measures such as ergonomic assessments and health and safety programs Matthews concludes I urge any company to take a look at your provincial financial statements, as there are often savings to be found. P [Return to table of contents] 3 ProClaim Fall/Winter 2014
Business Interruption Financial Statements and Beyond Natural disasters such as Hurricane Sandy, the tsunami in Japan, fl ooding in Australia and the numerous hurricanes that threaten North America every year are on the rise. According to Thomas Varney, head of risk consulting at Allianz Global Corporate & Specialty Insurance claims caused by natural disasters have risen 15-fold over the past 30 years. One effect of these disasters is the shutdown of businesses and the disruption of their ability to generate revenue. Most businesses will thankfully be covered for their ongoing business losses under business interruption insurance if damage to property has occurred by natural disasters or other causes. When analyzing such business losses there are a number of issues that should be addressed. The following example will illustrate some of the issues that should be reviewed for a small business when a business interruption loss occurs. Background There is a family-operated restaurant located in a city in southern Ontario close to a lake. It is comprised of a main eating area, a bar area and a patio that is open as long as weather permits. In January of 2013, a fire occurred at the premises which resulted in some fire and smoke damage to the restaurant. The insured advised that the restaurant would be closed for two months. The insured has business interruption coverage with a gross profit wording. The adjuster working on the claim was provided with a financial statement for the restaurant for the fiscal year ended prior to the loss. On March 31, 2013 repairs to the restaurant were completed and sales were back to normal levels. The Insured wished to be paid based on their business interruption insurance. Figure 1 on the following page shows the financial statements. For simplicity, a gross profit rate of 45.83% has been provided and we assume that all fixed costs continued during the repair period. Using only a financial statement, we can 4 ProClaim Fall/Winter 2014 calculate a potential gross profit loss for the insured by taking the yearly sales and calculating a monthly sales amount and applying a gross profit rate. In this case, yearly sales of $1,200,000 divided by 12 equals $100,000 per month, or $200,000 for the two months of repairs. Applying the gross profit rate, the insured s gross profit loss is $200,000 multiplied by 45.83% equals $91,660. Based only on this information, the insured could be paid $91,660 during the time that they are closed. Subsequent to the initial findings, and at the request of the insurance accountant, the insured provided some additional sales information for the two years prior (see figure 2). Based on a review of the sales information, it was noted that the restaurant is a seasonally trending business, wherein sales in the summer months are much greater than those in the winter months. Using this new information, assuming that there is no growth or decline in sales year to year, we now project sales during the repair period based on the previous February and March sales of $65,000 and $90,000 to calculate a probable sales loss of $155,000. Applying the gross profit rate to the sales loss, we calculate a gross profit loss totaling $73,328 ($160,000 multiplied by 45.83%). By using the additional information provided, it can be seen that the gross profit loss is much less than the result produced by relying only on the financial statements (a $73,328 loss versus a $91,660 loss). Please keep in mind that this is a very simple illustration of what the additional sales information indicates for a business interruption loss. There are a number of items that must be looked at for business interruption losses beyond the financial statement. Below are some issues that should be considered at when calculating a business interruption loss issues that might apply to more complex businesses. Understand the Business and the Environment It is important to understand the business and environment. There are a number of factors to consider. Internal Factors: Seasonality In our example, we reviewed how seasonality could affect Continued on next page...
Business Interruption (continued from previous page) how we project sales during the loss period. Location Where is the business situated and how does this affect sales? In this case, the location is close to the water and has a patio, which could indicate sales fluctuations due to seasonality. Capacity Is the business operating near capacity due to fire regulations (maximum number of people in restaurant at any given time)? Operating hours Is the business open on Sundays? Does the business have Friday and Saturday night crowds and is it open much longer than usual on those nights? Is the business closed at specific times during the year? Leases In this instance we assume that all fixed costs continued during the loss period. It is important to review the lease agreement (if the insured rents space) to verify whether rent continues while the business is unable to open due to repairs. Employees If employees have to leave the business due to the loss, will they return once the business reopens? If they leave, what is the cost to train new employees? External factors: General Economic Conditions What is the state of the economy? Has the area gone into a recession? Is the economy in a rapid rebound which could ignite inflation? Competitors Are there a number of competitors in the area where people will go to if the business is down for a FYE Dec 31, 2012 Gross Profit Amount % Amount % Sales $1,200,000 100% Cost of sales $400,00 33.33% Operating costs: Fixed costs $400,000 33.33% $400,000 33.33% Variable costs $250,000 20.83% Total operating expenses $650,000 54.17% Net income $150,000 12.50% $150,000 12.50% Gross profit $550,000 45.83% Figure 1: Financial statements Month Sales 2010/2011 2011/2012 Growth February 60,000 65,000 8.33% March 85,000 90,000 5.88% April 85,000 95,000 11.76% May 95,000 100,000 5.26% June 135,000 140,000 3.70% July 140,000 150,000 7.14% August 125,000 135,000 8.00% September 125,000 130,000 4.00% October 85,000 90,000 5.88% November 60,000 65,000 8.33% December 65,000 70,000 7.69% January 70,000 70,000 0.00% Total $1,130,000 $1,200,000 6.19% Figure 2: Sales information period of time? Will people come back to the business once they are able to reopen? Business life-cycle What stage is the business in? Is it a relatively new entry into the industry? Is it established and growing? Has the business matured and have sales leveled? Is the business on the tail end of its life-cycle? While these are a few items that can come up, there are number of other factors that would need to be addressed based size of the loss however, which is why it is important have a forensic accountant involved early on in the process to help identify some of these issues. Article by Jay Strano, CMA, accounting leader, Crawford Global Technical Services. Jay has managed numerous accounting related projects over his years of service since 1999. P [Return to table of contents] 3 rd Quarter Financial Results Third quarter 2014 consolidated revenues before reimbursements totaled $293.8 million, compared with $293.3 million for 2013. Third quarter 2014 net income attributable to shareholders of Crawford & Company was $10.2 million, compared with net income of $13.4 million in the third quarter of 2013. Third quarter 2014 diluted earnings per share were $0.19 for CRDA and $0.17 for CRDB, compared with diluted earnings per share of $0.25 for CRDA and $0.24 for CRDB in the prior year quarter. Mr. Jeffrey T. Bowman, chief executive officer of Crawford & Company, stated, Our third quarter 2014 revenues were fl at with last year as new business in specialty markets overseas and Broadspire replaced declines in claims volume in the Americas, and the runoff of a special project within Legal Settlement Administration. Consolidated net income for the quarter refl ected lower operating earnings in our Legal Settlement Administration and Americas segments and higher selling, general, and administrative costs that were partially offset by improvement in Broadspire s operating results. In addition, we saw a higher effective tax rate during the current quarter. During the 2014 third quarter, the Americas operating performance declined from the prior-year period, as the 2013 period benefited from significant weather-related claims activity in the Canadian market. While Americas segment operating earnings were down during the third quarter of 2014 as compared to the 2013 period, we have seen strong growth in our Contractor Connection operations in both the U.S. and Canada on a yearto-date basis. Mr. Bowman concluded, We continue to drive our Company to create long-term shareholder value and remain focused on achieving our core strategic objectives. While there are a number of areas in which the Company is performing well, relatively weak overall global claim volumes remain a headwind for us. Therefore, based on our outlook for the remainder of this year, we are reducing our annual guidance for 2014. P [Return to table of contents] 5 ProClaim Fall/Winter 2014
Property Priority (continued from first page) Alberta and GTA floods and the costliest year in Canada s catastrophic insurance loss history. Severe weather cat losses hit $3.2 billion. Industry data show that despite increases in premiums and claims over time, the Canadawide return on equity appears to be on a downward trend. The Canada 9-year average ROE for personal property from 2004-2012 was 7%, which is 4.7% below the overall P&C industry 9-year average of 11.7%. The data for commercial property is better, with a 9-year ROE average of 13.6%; however, the downward trend is also seen here, with 2011 being the least profitable year with an ROE of only 4.8%. Some regions, such as Alberta and the Maritime provinces have fared particularly poorly in personal property insurance results. Over the period 2004-2012, Alberta only had one year of positive ROE (2006), with 2011 showing the worst result at a staggering -51.8% ROE. The average ROE over that period in personal property was -17%. The Maritime provinces also posted a substantial negative ROE in personal property in 2009 (-17.1%), with the 9-year average at a mere 4.6%. While there are many sources of property insurance claims, water damage is singled out as the major factor behind the increase in losses and the pressure on insurer financial results. Insurance companies in Canada have shown that just over half of all property claims involved water damage. For one insurer, the figure for water-related losses in 2013 was $190 million. In February 2014, the Canadian Institute of Actuaries (CIA) released a report called Water Damage Risk and Canadian Property Insurance Pricing. The study, prepared by KPMG, included a survey of insurance companies on trends in water-related losses. It found that the majority of respondents answered water claims were roughly 40% or more of total claims. The CIA report also noted that insurance companies have some work to do to get a more accurate risk assessment of future water damage. Currently, most P&C insurers have not captured all of the data (about either the properties or the local environments) required for detailed actuarial analyses of the risk of water damage. To move to a good-practice state with respect to data will require considerable investment of personnel, IT, and human resources, the study stated. In the face of this uncertainty, insurers are increasing premiums a trend borne out in a J.D. Power Canadian Home Insurance Study. The report, released in June 2014, discovered that 45% of customers indicated they received a premium increase in 2014. It also noted a 10-point increase in the price index on a national level. Year over year, the number of weather-related insurance claims in Canada has increased by 32%, according to J.D. Power. Increased rates, higher (or changed) deductibles and new sub-limits for waterdamage coverage are only part of the insurer response to heightened property insurance exposures. Modified wordings are also being considered or implemented, particularly for sewer back-up coverage. Insurance Bureau of Canada recently released a new limited sewer backup endorsement advisory wording designed to clarify what is and what is not covered in a flood-type situation. While not binding, these advisory wordings are often used as the basis for insurance companies to develop their own policy terms and conditions. Whether modified policy wordings will clarify matters during a major loss event is an unanswered question for claims handlers. Independent adjusters will have to be aware and proactive on any property insurance changes and how they affect the end consumer. I think the important question for insurers is whether policyholders have read (the policy changes) and truly understand the implication to their own potential situation in the event of a loss, Eso observes. The tendency may be that in the face of increasing premiums, policyholders are accepting reductions in coverage in order to minimize premium increases. They may not have full understanding of the impact of various scenarios, such as what a major water loss or total roof loss in a hailstorm could mean to them if coverage is not full replacement coverage to full policy limit. The lack of complete awareness becomes a reality only when a loss occurs, which can make the claim settlement more challenging and could negatively impact customer satisfaction, he adds. In the short to medium term, more insurers will likely continue to control the frequency of water damage claims through measures like higher deductibles and sub-limits. Eso notes that insurance brokers will typically have the best line of sight into how many customers decline to submit claims due to these policy changes. He adds that Crawford s leading CLAIMSALERT centralized claim intake center, which receives and processes claims, 24 hours a day, 7 days a week, has witnessed some signs of this activity. What we do see... is a higher number of claims that are either withdrawn or simply cashed out due to a combination of higher deductible and lower sub-limit coverage, Eso says. In some of those situations, proceeding with full repair through a specialist contractor is simply not financially feasible for an insured whose policy is subject to sub-limit, depreciation or a high deductible. Any one of those may be the tipping point that strains an insured s financial resources beyond their ability to proceed with full repair. Eso observes that insurance companies have spent years developing comprehensive property policies on an all risk, replacement cost and high limit basis for most personal property insurance policies. They have also created preferred construction networks to handle the vast majority of claims through a direct repair process. He calls this the existing Canadian claims model. Changes that increase claim costs to the homeowner to the extent that larger numbers of files do not go through a managed repair process is a significant issue I think to the Canadian claims model, he observes. In the end, the property issue is two-fold: will the policy changes truly achieve the right effect for the insurance industry of limiting exposures? And how well will the changes be communicated to clients to avoid the sticker shock of diluted coverage? I think the issue that the property insurers will wrestle with for a while is the impact of the tightening of coverages and payouts available as they try to find the right balance, Eso concludes. The challenge will be finding a balance that maintains customer satisfaction and underwriting confidence, while controlling or limiting repair cost and allowing for competitive premium pricing. Time will tell whether current policy changes have struck that balance or gone too far. P [Return to table of contents] 6 ProClaim Fall/Winter 2014
Onwards & Upwards Kelly Albert, CIP, CRM National Account Executive, Global Client and Business Development Calgary, AB kelly.albert@crawco.ca Crawford welcomes Mr. Kelly Albert to the position of National Account Executive, Global Client and Business Development, for the Western Canada region. In his new role, Mr. Albert will assist Crawford s Global Client and Business Development team with its national growth strategy and execution. During his 21 years in the insurance industry, Kelly has gained extensive industry and management experience working on both the insurer and brokerage sides of the business. Les Cabell, BA(Hons), CRM Key Account Manager Toronto, ON les.cabell@crawco.ca Crawford would like to welcome Les Cabell to the position of Key Account Manager. Les has 31 years of experience in the industry. In his new role he will be working with both the Account Management and Sales teams, developing and implementing national sales initiatives and products. Val Correia Manager, Crawford Appraisal Management Services Waterloo, ON valquirio.correia@ crawco.ca Crawford welcomes Mr. Val Correia as Manager, Crawford Appraisal Management Services. Val has 14 years of experience in the industry. He attended Fanshawe College in London, Ontario, where he earned his certification as an auto body collision repairer under the inter-provincial red seal program. Anthony Magagna, BA, CIP, CRM, CHSO Operations Manager, Human Risk Services Mississauga, ON anthony.magagna@ crawco.ca Crawford would like to welcome Anthony Magagna to the role of Operations Manager, Human Risk Services. Anthony has been in the industry since 1990 and has extensive knowledge of Risk Management, WCB Claims Management, Health & Safety and Disability Management. He is a member of the Canadian Society of Safety Engineers, as well as the OIAA, CIAA and ORIMS. Contractor Connection News David Mercer District Manager, Contractor Connection Kitchener, ON david.mercer@ crawco.ca Crawford welcomes David Mercer to the role of District Manager, Contractor Connection. He joins a growing team of National District Managers whose primary focus is network contractor performance management. David entered the industry in 2006 and studied Business Administration Management Studies at Conestoga College. SM Brian Read, CIP, CFEI District Manager, Contractor Connection Kitchener, ON brian.read@crawco.ca GTS News Mark Schock, BSc, CIP General Adjuster Calgary, AB mark.schock@crawco.ca Crawford is pleased to announce that Brian Read has assumed the position of District Manager, Contractor Connection. He joins a growing team of National District Managers whose primary focus is network contractor performance management. Brian has 25 years of experience in the industry and has been with Crawford since 2006. Paul Hancock, national director, Crawford Global Technical Services, is pleased to announce the addition of Mark Schock, general adjuster, to the Crawford GTS team. Mark works in the Marine & Transportation and Power & Energy industry sectors and has 19 years of experience in the industry. 7 ProClaim Fall/Winter 2014
The Evolution of the IME (continued from page 2) included calls for greater accountability in the IME process. In the dispute resolution report, author J. Douglas Cunningham, a former Ontario Superior Court chief justice, stated: The government will need to reach out to health professional associations and the insurance industry in order to educate experts on their duty to provide fair, objective and nonpartisan evidence. IME providers are adapting to the need for impartiality in medical evaluations. Service providers and their assessors are structuring their activities in a manner that allows for clear accountability and transparency. Ultimately, individual assessors have their respective (health) college that they are accountable to and must adhere to the standard of practice that governs their profession, Stevens comments. The onus is on the adjuster to ensure that the professional selected to conduct the IME assessment is qualified to do this, and that it is within the scope of their expertise. There are several strategies that adjusters can use to ensure quality IME reports, according to Stevens. Typically, adjusters select an IME facility from a roster of vendors who have been previously approved by the insurance company client, though Crawford has its own vendor management network of over 350 professionals across 30 disciplines including IMEs. Each vendor in the network is carefully screened, follows an efficient referral process and adheres to strict reporting timelines. Quality reports that are error free and answer all questions in a straightforward manner is what an adjuster should be looking for, Stevens says. It is a misguided notion that an insurer is looking for a certain result from an IME provider s report. The only result expected is an objective report on an injured party s diagnosis, prognosis and disability status. She notes it is important to ensure the IME professional is not only the most qualified within the scope of their expertise to conduct the assessment, but also has a balanced workload of treating patients, either in a private or hospital setting. This will assist in bolstering their credibility, according to Stevens. It also may be helpful to review case law and arbitrations to determine if an IME assessor has experience presenting evidence at trial, she adds. The ongoing trends of increased regulation, heightened expectations of neutrality and insurance company cost pressures will set a high bar for the IME sector to meet. There likely will be more changes ahead, according to Stevens. I suspect we will likely see further consolidation in this sector as the pressures on IME providers are bound to continue, she concludes. They will have to be better, faster and control their costs to be viable in the future. P [Return to table of contents] ProClaim is published by Crawford & Company (Canada) Inc. as an information resource for our clients, prospects and employees. Our focus is to cover key issues while offering solutions to the insurance, risk management and human risk industries in Canada. For more information about any of the articles published in ProClaim, to submit ideas for articles, or to order additional copies, please complete the reader response card or email info@crawco.ca. The information in ProClaim is not offered as legal or medical advice, or as a substitute for professional assistance. All materials are 2014 Crawford & Company (Canada) Inc. Crawford & Company (Canada) Inc. is a wholly owned subsidiary of Crawford & Company. Based in Atlanta, GA., Crawford & Company (www.crawfordandcompany. com) is the world s largest independent provider of claims management solutions to the risk management and insurance industry as well as self-insured entities, with an expansive global network serving clients in more than 70 countries. The Crawford Solution SM offers comprehensive, integrated claims services, business process outsourcing and consulting services for major product lines including property and casualty claims management, workers compensation claims and medical management, and legal settlement administration. The Company s shares are traded on the NYSE under the symbols CRDA and CRDB. Fall/Winter 2014 300-123 Front St. W. Toronto, ON M5J 2M2 Canadian Head Office: 539 Riverbend Dr. Kitchener, ON N2K 3S3 Tel: (519) 578-5540/1-800-267-5540 Fax: (519) 578-2868 Sales & Marketing: 300-123 Front St. W. Toronto, ON M5J 2M2 Tel: (416) 364-6341 Fax: (416) 364-1641 info@crawco.ca Canada Post Publications Mail Agreement # 40048380 ATTENTION MAILROOM: If undeliverable, please return to sender by mail, or by e-mail at info@crawco.ca. Thank you. www.crawfordandcompany.ca An equal opportunity employer 8 ProClaim Fall/Winter 2014