By ReduceYourWorkersComp.com February 28, 2017
If you’re trying to improve your workers’ comp program, ask for an annual stewardship meeting with your insurer/third-party administrator.
But if you really want to see game changing results, initiate a stewardship process. It’s a collaborative approach that takes some leg work and elbow grease, but can truly push your workers’ comp program to the next level.
In a typical stewardship meeting a representative for the employer and insurer or third party administrator discuss a pre-prepared report that shows your claims and program trends from the previous year and discuss goals for the next year. While it can be beneficial to get this snapshot of your workers’ comp program, there is much more that can be done.
Best outcomes for injured workers, optimized claims performance, and a reduction of your total cost of risk should be the goals. Savvier companies find more value and better outcomes through an intensive coordinated approach that starts long before the actual stewardship meeting.
Conversations with a multitude of people ahead of time can help you define what you want included in the report, the metrics you want analyzed and the parameters. Among those you may want to consult with are your carrier or TPA account manager, risk management information systems personnel and data analysts; claim and safety consultants; your insurance broker or agent; and others within your own organization.
Key steps in the process at this point include:
1. Set the date. Decide when you want the report completed.
2. Review past reports. This can help you establish a baseline.
3. Formulate a concept for the report.
4. Discuss the format and content of the report; set goals, objectives, metrics, deliverables, ideal takeaways, and the list of attendees.
5. Review preliminary data. Easily available analytical reports can be your starting point until you determine what needs to be customized, depending on what you are trying to accomplish. Not all data is going to be relevant. Some examples of the types of data may include:
• Frequency analysis: claim volume, litigation, examiner caseload and lag time.
• Severity analysis: average/total incurred, average/total paid, loss stratification, lag analysis, litigation, subrogation/recovery.