Take control of workers’ compensation costs
Take a proactive, cost-cutting approach to workers’ compensation with direct access to WTW Workers’ Compensation Diagnostic.
While dynamic workers’ compensation risks can be difficult to identify, quantify, and mitigate, WTW’s software gives you a new level of actionable transparency that lets you quickly identify what’s driving your workers’ compensation costs, diagnose the most efficient ways to address these issues, and the financial impact of these recommended pre and post-loss measures.
Workers’ Compensation Diagnostic also gives you early warning on the open claims that require your urgent attention to prevent greater losses.
How Workers’ Compensation Diagnostic can reduce your costs
Can you improve your pre and post-loss claims processes to reduce costs? How would these moves impact EBITDA (earnings before interest, taxes, and amortization)? What areas of your business are driving workers’ compensation costs? WTW’s Workers’ Compensation Diagnostic gives you the answers, revealing the path towards a more efficient program, benchmarking your results against industry and geographic-specific data.
If your current broker is not regularly interrogating your workers’ compensation costs and the efficiency of your existing program, we expect you could make potentially significant cost savings using Workers’ Compensation Diagnostic.
The software enables proactive ownership of workers’ compensation costs by:
- Evaluating your loss history, comparing your experience with WTW's proprietary database of claims and exposures, calling on three million datapoints
- Diagnosing your strengths and weaknesses, identifying areas where your additional attention and resources could have most impact, such as process gaps or around loss drivers, such as specific injury types
- Projecting the financial impact of recommended actions to contain your costs to reveal the most efficient plan of action
- Forecasting claims and the financial benefits of claims services over a three-year horizon.
How Workers’ Compensation Diagnostic reveals cost savings
WTW’s results-orientated software evaluates nine different claims metrics:
- Average incurred
- Average paid
- Paid per $10k of payroll
- Frequency per $1M of payroll
- Allocated loss adjustment expenses (ALAE)/incurred
- Open ratio
- Medical ratio
- Lag time
- Cause of loss.
We compare these metrics to a benchmark, a virtual peer we create to reflect your industry and other variables specific to your organization.
To get a deeper understanding of where your greatest risks lie, we show the types of claims driving costs and allow you to customize your view by state, by division or other segmentation.
Quantify the improvements to workers’ compensation claims efficiency
Workers’ Compensation Diagnostic both makes recommendations to contain your costs and quantifies the savings these improvements could deliver over a three-year period.
The customized recommendations on boosting efficiency and reducing costs are provided by WTW’s Risk Control and Claim Advocacy (RCCA) group and focus on:
Ergonomics
To help reduce employee discomfort, minimize lost time, and eliminate escalation to injury or claim
Slip, trip, fall (STF) prevention
With measures to reflect the aging workforce and to reduce the claims related to STF exposure
Risk process optimization
A practical review of the entire risk process from pre-loss to post-loss
Claim closure acceleration
Focusing on reducing the number of open claims, decreasing the ultimate loss paid and lowering the administrative costs
Cost containment analysis
Ways to reduce the future incurred losses by controlling medical costs, indemnity costs and other expenses.
Evaluating the financial impact of changes to your workers’ compensation program
With Workers’ Compensation Diagnostic, you can understand the financial impact of implementing the risk controls and program improvement recommendations ahead of making decisions. The tool analyses both the impact of pre and post-loss improvements.
Pre-loss cost adjustment shows the impact of improvements around ergonomics, STF prevention and risk process optimization, comparing the costs of historical losses and the costs of potential losses.
Post-loss cost adjustment shows the impact of claim closure acceleration and cost containment analysis actions, giving you a comparison between the current ‘ultimate loss’ and the potential ‘ultimate loss’.
Workers’ Compensation Diagnostic gives you the impact of pre-loss and post-loss costs adjustments in terms of:
- Current annual cost or current cost
- Annual savings or potential saving
- Three-year EBITDA impact.
How can you use Workers’ Compensation Diagnostic?
You can use direct access to our proprietary workers’ compensation data and software to:
- Get a continuous evaluation and visualization of data that lets you locate weaknesses in your program
- Benefit from predictive analytics to identify specific claims or other drivers of adverse loss outcomes
- Stay abreast of what’s happening to your workers’ compensation costs in total and segmented on a business level, evaluating different parts of the company with risk scores to identify areas for improvement
- Reveal the common injury types you should focus on to improve loss control by implementing safety practices
When should you use the Workers’ Compensation Diagnostic?
You can use the software to evaluate your retained loss experience when planning for budgets, accruals and insurance renewals, or use it as part of your quarterly reports cycle to stay ahead of changing risk profiles, risk hot spots and program optimization opportunities.
Get in touch with our workers’ compensation risk analytics specialists.
