Q&A
Rich Ives VP of workers’ compensation, claim organization TRAVELERS
Years in the industry 17 Fast fact Predictive severity modeling such as Travelers’ Early Severity Predictor can help reduce costs by providing customized care and getting employees back to the workplace over shorter periods of time
How predictive modeling leads to better outcomes How are medical costs affecting workers’ comp in the US? Will this put pressure on pricing? Medical costs have outpaced, and continue to outpace, the rate of general inflation. Given that roughly 63% of our workers’ compensation costs are attributed to medical, this means our customers’ costs for workers’ compensation claims continue to increase.
past decade that are part of [our programs] are helping to provide significant benefits to our customers and their injured employees. Claim capabilities like our Early Severity Predictor, which is producing up to 50% better outcomes, and concierge nurse service, which helps injured employees return to work 35% faster, are just two examples.
What effect would a potential repeal of Obamacare have on workers’ compensation?
Can you talk a little more about the Early Severity Predictor?
It’s too early to understand the changes that could be coming our way, but we will analyze proposals as they are put forward.
What are the notable effects of insurtech on workers’ compensation? We are excited about the possibilities new digital technology provides us. We have begun leveraging the latest advancements to improve our processes and will continue to roll out new, innovative capabilities that streamline and enhance the claim experience. We have much to say about this area, and we look forward to sharing more in the future.
How will Travelers deal with the expected challenges in the market this year – particularly rising medical costs and “deteriorating prices,” as Fitch Ratings put it? We believe the innovations we have developed over the
Chesapeake names new security director
Maryland-based Chesapeake Employers’ Insurance Company has tapped Stephen Friedman as its director of security and privacy. He was previously a senior internal advisor at the company. In his new capacity, Friedman will ensure that the firm complies with laws and regulations applicable to the privacy and security of policyholder and claimant information. He will also help in the development of policies and procedures to protect company data, as well as facilitate the creation of disaster and incident response schemes.
Travelers created a patent-pending predictive model called the Early Severity Predictor that identifies injured employees who are at high risk of developing chronic pain, which often includes being prescribed painkillers like opioids, as part of their recovery. With our Early Severity Predictor, we can identify injured employees who have the propensity to develop chronic pain early in the duration of their treatment – within weeks, rather than many months later, and before a harmful addiction to pain medications like opioids occurs. Historically, 75% of these at-risk injured workers would have had surgery as part of their treatment. With the [risk modeling platform], these surgeries have been reduced by more than 25%, thus reducing the injured employee’s exposure to opioids. As a result, the Travelers program has improved claim outcome costs – which average approximately $40,000 per injury – by up to 50%, and our approach has helped to measurably reduce the use of prescribed opioids in our workers’ compensation claims.
Pinnacol Assurance issues $50 million in dividends
Colorado-based Pinnacol Assurance is remitting $50 million in workers’ compensation dividend checks to its policyholders for maintaining safe workplaces. The distribution benefited around 53,000 employers throughout the state, or around 94% of the company’s policyholder base. “This dividend is possible because of our policyholders’ commitment to the safety and well-being of their employees, Pinnacol’s financial stability and strength, and a vibrant Colorado economy,” said Pinnacol president and CEO Phil Kalin.
Ohio BWC rewards workplaces for safety
The Ohio Bureau of Workers’ Compensation has presented Safety Innovation Awards to five employers in the state who designed innovative solutions to prevent workplace injuries. “Sometimes a solution to a safety hazard isn’t readily apparent, and it takes extra effort and ingenuity to address a company’s unique needs and challenges,” said BWC administrator and CEO Sarah Morrison. “That’s just what each of these employers did, and we applaud them for going above and beyond to protect their workers.”
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