Settling claims benefits all sides
Companies are unnecessarily leaving tens of millions of collateral dollars tied up in escalating reserves and insurance premiums, say several workers' comp stakeholders.
Non-catastrophic claims that have been open for years should be moved toward settlement, which benefits employers, claimants, and insurers because it:
- Takes the claimant out of the system and provides adequate money for wage loss and medical treatment.
- Gives claimants a better quality of life since they are no longer relying on and living for the workers' comp system.
- Closes the file and reduces outstanding costs.
- Eliminates the opportunity for additional injury/illness.
- Removes the threat of cost escalation which is more likely greater than the time value of the money held in reserve.
- Solidifies the value of the claim and should have a positive effect on incurred but not reported losses and collateral calculation.
June 11, 2012
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