Comp experts discuss economic impact at loss control experience symposium
At the two-day event, sponsored by the ASSE Risk Management/Insurance Practice Specialty, insurance experts analyzed trends and forecasts.
"Today we're seeing an investment downturn, medical inflation, talent erosion, an aging workforce, terrorism, and consolidation of the market," said Naveen Anand, senior vice president of CNA, an insurance provider in Chicago. "To succeed, we need to diversify. We need disciplined pricing, claims excellence, deep customer knowledge, quality data, enterprise risk management, and good people. Good people mean good business."
Some experts noted that statistics show that during hard economic times, workers' comp claims go down while some injury claims/liabilities -- such as slips and trips -- go up.
"As always, and especially now, we, as risk control professionals, need to demonstrate our return on the safety investment," said William J. Boyd, senior vice president of risk control for CNA. "We continue to align resources to revenues, help our underwriters price risk, and are committed to helping our customers reduce risk and enhance safety."
Some experts noted that insurance loss management programs can help employers stay afloat during tough economic conditions. Jim Newberry, risk control manager for Island Insurance Company in Honolulu, and Kathy Pagnano, vice president and workers' comp claims manager at CNA in Chicago, said they have found that pharmacy review programs, medical bill reviews, physical therapy, and radiology networks are effective in managing skyrocketing medical costs. Newberry and Pagnano said that through the medical review process, they have seen a 50 percent to 70 percent reduction in medical bills.
Pagnano and Newberry noted that by working together, claims and loss control personnel can address these issues while providing a higher level of service for their customers achieving effective cost control.
November 17, 2008
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