The business world is constantly changing yet Workers’ Compensation claims continue to drive up the cost of operating a business. Workers’ Compensation claims have been somewhat unpredictable in the past because there wasn’t a reliable way to assess an injury and execute the proper treatment or rehabilitation. According to a report published by Property Casualty 360, 20 percent of injuries have been driving 80 percent of claims costs.
Astute claims managers and underwriters have noticed this trend and created a new predictive model that more accurately classifies injuries and allows claims adjusters to allocate money where it’s needed.
Predictive modeling can be used as an early warning system by flagging down claims which at first, may not seem costly but in time prove to grow large and complex. The process is relatively simple. It segments injury types, like strains, contusions, or falls, and takes into consideration other variables, such as, age, claims history, co-morbidities, and essentially any factors that are helpful in determining the severity of an injury. Learning these factors within the first few days of a claim can significantly alter how it is handled and effectively lower the cost of the claim.
Being able to categorize injuries and portion the appropriate care can significantly help lower the actual cost of your Workers’ Compensation program because your injured workers will be getting the care they need instead of being improperly diagnosed and given the wrong treatment.
Using an injury group-based approach to develop a state-of-the-art claim predictive model is a reality today. These models enable organizations to assign the knowledgeable resource to the appropriate claim at the required time for targeted intervention. The new, evolved predictive modeling systems are allowing claims organizations to help injured employees get better faster and return to work earlier.
If you feel like your landscaping, real estate, nursery, marina, auto dealership or waste hauling business could benefit from lowering the cost of Workers’ Compensation claims, contact The Flanders Group today.
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