Workers Comp Audit Stress Reducer
Use It For Your Next Premium Audit

Insurance Trends vs. Paper Clips – Lets Get Ready To Analyze


Insurance Trends  vs. Paper Clips Analytics

The analysis of most insurance trends involves many innocuous spreadsheets that only gives the reader headaches.   I was looking over an old article today concerning a NCPRIMA presentation from 2014.

Graphic of Insurance Trends Icon

BTW, we are upgrading every article on this website to make it Google searchable and rankable.    That task has taken over 6 months as we have over 1,620 articles to upgrade.  It is ongoing.   Whew!

I digress – one of my old bosses always said do not analyze paper clips.  You have people to do that for you.  Analyze the big trends to see the direction your organization is heading (to and fro).  Many of the groups to which he was presenting consisted of a large number of financial types (CFO, Financial Officer, etc.).

The financial types – I guess I am one – would squirm in their seats when he would say – Analyze trends not paper clips.   Insurance trends are very similar.

I have pointed out many times in presentations and in the articles that Excel(R)  is your best friend when analyzing trends.  In fact Microsoft has provided Statistical Analysis packs for Excel.   This is one of the best bargains in the analysis world.

Apache Open Office Insurance Trends Computer Screen
Wikipedia – Apache Foundation

If you are looking for a more economical (free) data analyses pack, you can try the OpenOffice by Apache installation that is a good analysis pack.    The work you do must be personal and not business for the OpenOffice packs.   You may want to throw a few dollars their way as the software is a treasure for non-business analysis.

Correction – According to Apache

“You may use it on home machines, in the office, with your small business, school, church, gardening club, etc.”

The ones I use are Regression, Stepwise Regression, Coefficient of Correlation, Z-test, T-test, F-test, Chi-Square, and Regression Graphs.   I use regression often as I like to use more historical data than most insurance actuaries.   Business cycles  and insurance trends are 20 year – not 10 or less.

Google has long recognized long-tailed data for their keywords.  Regression is a long-tailed analysis.

Analyzing insurance trends can be tedious at first.  Once you set up a framework for analysis – depending on what you are analyzing – the task can become simple to a point.

Related: Insurance Designations – Complete List with Updates

©J&L Risk Management Inc Copyright Notice


2 Responses

  1. Very nicee post. I just stumbled upon your blog
    and wanted to say that I’ve really enjoyed surfing around yoir blog posts.

    After all I’ll be subscribing to yohr feewd annd I hope yyou write again soon!


James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management 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


Get the latest workers' comp news FREE!

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