Workers Comp Systems Are Antiquated At Best

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

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One of my main concerns in working with clients is the basically outdated Workers Comp systems that have to be trudged through to even perform basic operations.  This article on outdated Workers Comp systems analyzed what Workers Comp claims workers already knew – most systems are severely outdated. 

Vector of Two Man Workers Comp Systems Antiquated At Best
123RF

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  • 83% of claims executives thought their systems were outdated and they needed the IT departments help to make any changes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. 

    Antiquated Car Workers Comp Systems Old Picture
    Wikimedia Commons – Dreamsoffuture
  • 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.

©J&L Risk Management Inc Copyright Notice

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

One Response

  1. Its not just the adjusters that suffer from these outdated systems. The IW suffers because it delays treatment and the treating docs suffer because of the extensive delay in payment (if payment ever comes at all). Electronic claims is the solution but only if there is a cohesive system that promotes transparency for all parties. Otherwise there are going to be fewer and fewer treating docs for IW to choose from. Daisybill is the ONLY work comp billing solution out there making it easier for adjusters and docs.

Comments are closed.

Table of Contents

Related...

James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

Subscribe

Get the latest workers' comp news FREE!

Name
This field is for validation purposes and should be left unchanged.