Workers Comp reserves remain the engine of the Workers Comp claims process.
If your company has a voluntary market policy, then these numbers become the basis for your Experience Modification Factor also known as the E-Mod or X-Mod
For self-insurance, the budgeting process must center around the workers comp reserves.
One needs to think of the reserves as the workers comp adjuster’s forecast of the future payouts over the life of the claim.
Reserving takes many years to learn. Setting these very important numbers can be thought of as an art more than just adding up relevant numbers.
Workers Comp technology has given us predictive analytics for reserving. I am not a fan of predictive analytics as the human body heals differently for each person.
The reserves are divided into three main categories:
Do not expect any state’s department of insurance to intervene if a file contain excessive reserves.
One needs to remember that almost no rules exist for the setting of workers comp reserves for a certain file.
Workers Comp Reserve Redundancy – Industry Health Measure + Bane of Claims Staff What is a Workers Comp Reserve Redundancy? Why does it keep Claims
Workers Comp Allocated Expenses – The Hidden Premium Charges You May Not Owe A long-running debate still exists today on how workers comp allocated expenses
Workers Comp Reserve Reduction Strategy – Do This Last Critical Step Many articles in this blog center around formulating and enacting your workers comp reserve
Animal Rescue Loss Run Analysis Reduced Workers Comp Reserves – Short Deadline We reduced Workers Comp reserves for an Animal Rescue and Veterinary in 30
Workers Compensation Claim Reserves Difference Among Carriers and TPAs Most Workers Compensation Claim Reserves begin when the data input division of a carrier sets the
Workers Compensation Reserves – Lowering Them Can Be Difficult The Workers Compensation reserves on a file naturally generate controversy. Why is there so much
Final Claim Reserves Set Earlier Than Expected The final claim reserves are set much earlier than one might expect in the reserving process. Most adjusters
Workers Compensation Reserves More Accurate With Fee Schedules Workers Compensation reserves (Total Incurred minus Paid) receive an accuracy boost with fee schedules. Why? –
$250,000 Claim Reserve Level Creates Many Critical Responsibilities The $250,000 claim reserve level causes many necessary actions. Some of them are obvious. The other not-so-obvious
Workers Compensation Reserve Increases 10 Ways To Cause Huge Reserves Most Workers Compensation reserve increases can be controlled by employers. Let us see how employers
Workers Compensation Reserves – The Illusive Moving Target All Workers Compensation reserves have a common element. Very few, if any, employers, actuaries, underwriters, agents, and
The Easiest Way To Waste Time On Workers Comp Before The New Year I have discovered the best way to waste time on Workers Comp
Workers Compensation Predictive Modeling One of the more popular buzz phrases now is Workers Compensation predictive modeling. If one looks at any of the WC
Stairstepping Reserves Never Good For Workers Comp The two edged sword of Stairstepping reserves can be one of the most damaging developments to E-Mods or
Workers Comp Reserve Reviews And Subrogation Our Workers Comp Reserve reviews uncover many concerns on claims handling. Subrogation refers to an insurance company seeking reimbursement
The Outstanding Reserves Are The Key Outstanding reserves can make or break any company’s Workers Comp budget. I received two questions this week on the three
Workers Comp Reserving Is A Guesstimate The Workers Comp reserving on your files usually is based on no formulas. This article is from another manual
Reserve Question And Premium Audit = Not The Same Thing We received this reserve question earlier this week. I thought I would address it now
Reserve Review Action Plan I had posted often over the last few weeks concerning claimx`s review for insureds with a January 1, 2011 renewal date.
Stair Stepping Reserves Very Harmful In my last post, I noted the term stair-stepping. This can ruin any Workers Comp budget for a regular or
Lower Workers Comp Reserves Not Always Best The workers comp insurer reserves sometimes hide a reserve deficit. AM Best released a report on May 2nd
Reserve Reduction Plan And The Unistat Date I wrote last week on the timing and deadline for having your Workers Compensation reserve reduction plan in
Workers Comp File Reserves Timing Important I try to post information on Workers Comp file reserves this time of year. Why? The majority of Worker
Term Of The Day – Allocated Loss Adjustment Expenses The Loss Adjustment expenses (ALAE) can be allocated to the adjustment of a certain claim. Often,
Workers Comp Reserve Reduction Program I was going to construct a chart on when your company’s Workers Comp reserve reduction program would need to begin
Loss Reserves Are An Adjuster’s Forecast Loss reserves are the the dollar amount set aside or reserved to completely cover the expected cost of a
Allocated Expenses-Workers Comp Term of The Day Allocated Expenses (also known as ALAE) are expenses charged to a Workers Comp term file that are not
Workers Comp Claims Data and Payroll Workers Comp claims data and payroll must be important. I have received many inquiries about what changes are upcoming on
Workers Compensation Loss Run Information Critical The Workers Compensation Loss Run contains very important information. I have posted almost ten times concerning online claims access.
Travel and Expense Charges to Reserves – Controversial Subject Travel and expense charges to reserves creates many questions on how to handle these in the
Expense Reserves vs. Medical Reserves The third and final reserve figures are the Expense Reserves. These reserves have caused quite a large amount of confusion
Medical Reserves – CPT Codes Workers Comp medical reserves are the most complicated of the three reserves to estimate. Can you imagine trying to predict
Loss Run Claim Reserve Analysis A loss run claim reserve analysis is one of the most important steps in reducing your workers compensation budget. Are
Workers Comp Recession Proofing – Another Angle The Recession proofing program centers this times on reserves. I have received quite a few emailed comments and
Self Insured File Reserves Need To Be Monitored Reserve reviews for Self insured Files are just as important as ones for companies in the regular
One Thing Not To Do On Your File Reserves Working in a Claims Dept for many years, I had seen one thing that would totally
Workers Compensation Reserves – The Ever-Silent Budget Killer Workers Compensation reserves can be critical when trying to lower your company’s premiums. The silent budget killer
Loss Run Online Access Is Just The Beginning You have online access or you have all of the loss runs – what do you do now? You
Workers Comp Claims Worst Case Scenario The worst case scenario on your Workers Comp claims. These words send chills through me like no others in anything
Workers Comp Reserve Reviews Start With Current Loss Run The start to effective Workers Comp reserve reviews begins with a current loss run – hopefully
Fastest Way To Reduce Premiums Reserve Review Performing a Workers Comp reserve review is the key to reduce premiums of your reserves very quickly. Your
Workers Comp Reserve Reviews Can Be Complicated Reserve Reviews – the hidden way to save $ on your Workers Comp premiums – Reserve reviews are
Work Comp Premium and Reserve Review Differences The difference between Workers Compensation premium and reserve reviews comes up often during one of our presentations or
Automated Reserving Programs For Workers Comp – Better Than An Adjuster? I received this question on automated reserving in response to yesterday’s post. You had