Claims Cost Control

As workers’ compensation claims began to rise in the late 1980s, Lockton was one of the first insurance brokers to recognize a growing need for claims cost control. Since that time, we have built one of the most comprehensive claims reduction programs offered today. Our consultants work with your senior management to implement thorough and effective programs tailored to your needs.

Our process is completely focused on your unique issues. Comprehensive surveys and analysis of your workers’ compensation practices are followed by a plan for improvement. Training programs are offered to educate internal “injury counselors” and ongoing analysis and program development helps you reach a desired “best practice” status.

Lockton’s Claims Cost Control Consultants support you throughout the entire implementation process. Since our consulting experts take a project approach, we only do what is necessary to help you succeed.

Success Stories:
	Simplifying Claims Management Lacking the proper software solution to manage their claim information, a leading building service firm worried about the consistency and compliance standards of their in-house workers’ compensation claims. Lockton’s Claims Cost Control team went to work by introducing WCCMS software to manage their claims. The Lockton team also educated and continues to mentor the claims managers regarding post-injury management practices. These solutions enabled the service provider to focus their efforts on post-injury claim management rather than tracking claim information. This single system allows the firm to maintain all claim information in one accessible place while managing both their in house and carrier workers’ compensation claims.
	Creativity and persistence save a company’s operations Large healthcare organization with nine hospitals and four clinics, each had its own process of handling workers’ compensation claims. The workers’ compensation costs reached $6 million, and management asked Lockton if this figure could be controlled and how it could be done. Lockton identified “best practices” from each entity and recommended practices for a system-wide standardization. Lockton created a workers’ compensation manual for all locations, as well as established an annual workers’ compensation conference and monthly dashboard reports with senior management. Together these action have generated significate savings and helped the workplace become safer.
	Getting Claims Handling on Track When a national retailer faced frustrations with poor workers’ compensation claim handling, Lockton went to work. We collaborated with our client on a detailed audit of the TPA handling claims for the firm, and found a 72 percent compliance rate on “best practices,” well below our 90 percent expectation. We worked with the TPA’s senior management to create an action plan that worked fast: within nine months, the claims administrator had improved to 95 percent. The result is a better workers’ compensation program for our client and more effective claims handling for their injured workers.
	Energizing Claim Management After a period of rapid acquisition and growth, this client want to refocus its attention to the workers’ compensation program. The company asked Lockton’s Claims Cost Control to put the disjointed program back together and show a real saving. Lockton collaborated with its Risk Manager and Workers’ Compensation Specialist to centralize the post-injury process. The team primarily focused on prompt claim reporting, encouraging injured employees to seek treatment from designated medical providers, and a promoted the transitional-duty program for injured workers (allowing employees to return to work quicker and remain safe while recovering). Within one year of implementation, the company experienced a 14 percent decrease in average cost per claim and a 25 percent decrease in the number of lost time claims.