Workers Comp Systems
One of my main concerns in working with clients is the basically outdated Workers Comp systems that have to be trudged through to even perform basic operations. This article on outdated Workers Comp systems analyzed what Workers Comp claims workers already knew – most systems are severely outdated.
When we advise investment groups or are analyzing a claims system, I am sometimes shocked at the system in place. Workers Comp systems are actually even worse. When I attended the recent LRP National Workers Compensation Conference in Las Vegas this year and last, I was searching for something new in the claim processing arena. While there are great system providers, I still did not see one that I would call cutting-edge.
The aforementioned article centered on a study of claims executives. Some of these are not necessarily directly related to Workers Comp. However, there are some that are “spot on. ” Some of the almost shocking results were:
- 83% of claims executives thought their systems were outdated and they needed the IT departments help to make any changes
- Half (54 percent) of those surveyed say their core claims systems are more than five years old and almost one-third (32 percent) of respondents say they rely on more than five different applications to process claims. How can someone be productive if they have to run five different systems? I know of one carrier that presently uses eight.
- More than three-quarters (78 percent) of respondents say they are on a path to upgrade their claims systems; among these respondents, almost one-third (31 percent) say the last major upgrade was made more than three years ago.
- Two-thirds (66 percent) of claims executives surveyed think their claims systems are not optimized to collect and analyze the growing volume of data available – such as insights about consumers from social media and usage data collected by means of telemetry and Global Positioning System – which would enable them to refine and improve claims management.
- More than three-quarters (78 percent) of respondents say their claims organization is not equipped to manage new forms and level of risks such as cyber-crime, terrorism, increased frequency of severity of natural catastrophes.
I will cover one statistic in my next post that will have employers and some claim adjusters shouting at their screens. It is a shocker.
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