The recent numbers for the workers’ comp industry appear to show solid improvement in recent years, but in actuality they also serve to highlight an ongoing problem for the field according to a recent Property & Casualty 360 article. The article, “NCCI Data Reveal Need for New Model for Workers’ Comp Claims Management,” reveals that premium adjustments are not the solution to the continuous losses in overall profit for workers’ comp, but rather an overhaul of the industry’s claim management process is necessary.

The problems of communication faults and overwhelmed adjusters plague the present system for claims management in the workers’ compensation industry. These issues increase claims’ durations and risks for litigation, which might increase the cost for every incoming workers’ compensation claim.

The current system even has tiered elements, and it is possible for a claim to be passed around to multiple adjusters, reviewed, and then maybe passed along to an attorney in the worst case scenario.

To fix these flaws, a new model is needed that firmly fixes the problems with the current claims management system:

  • The new system should make each claim manageable by a single claims manager through the life of the claim, enabling a company to know who has specific claim information and updates, and giving a claims manager a specific job to do. This would speed up the management process by consolidating all information in one place to lower the litigation risk and close claims faster.
  • Carriers and agents must collaborate with clients to make a solid plan for guiding injured workers through the return-to-work (RTW) process. Ways to collaborate with clients include establishing official policies for modified-duty job descriptions to get injured workers back to worker sooner as well as developing policies for firing employees with open workers’ comp claims to guarantee solid legal cases for termination.
  • Claims need to be reported within 24 hours of being opened so mitigation begins immediately, possibly done by making an on-call hotline for claims intake.

Following these policies has been shown to reduce claims costs by thirty percent on average, according to the Property & Casualty 360 article. Workers’ compensation has been slow to adopt new trends historically, but the three initiatives listed above can help the workers’ compensation industry provide better care to injured workers, get them back to work faster and lower overall claims costs.

If you’re in healthcare, insurance, technology or other professional services industries, and need help with a PR, marketing or social media campaign, contact Scott Public Relations.

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