Insightful Data Drives Risk Profile Impact and Ancillary Cost Management Decisions

Suppose someone met you at a professional function and offered to bring you a beverage. You watch as it is carried toward you, and it's impossible to ignore the way the contents are carelessly being spilled. By the time it is delivered, about a quarter of your beverage is soaking into the conference center carpeting. You instinctively reject the offer to bring you a second. After all, you'd never tolerate that kind of loss.

Instead of a beverage, what if it was your workers' compensation claims data being delivered? If your company is similar to other organizations across most business sectors, industry analyses suggest that between 20 percent and 30 percent of claims payments are lost to leakage. With the average workers' compensation per-claim cost now at $41,757, there's a significant amount of money seeping wastefully into the carpeting. Additionally, preventable injury rates continue to rise steeply—7.5 percent in 2021 and 4.7 percent in 2022—forcing organizations to pay out many more of those costlier claims.

Actually, insureds already have everything that is needed to successfully affect reductions in their claims and the incidents that give birth to them. Their own data is a literal treasure trove of opportunities for not only determining claims costs but also for spotting patterns that signal a need for new thinking about better ways to address them.

Click here to read the full article, first published by IRMI, and learn about resources you likely already can leverage to reduce your claims.

The above information does not constitute advice. Always contact your insurance broker or trusted advisor for insurance-related questions.